Chapter 03 · Section 3.1
In-the-money put option
An in-the-money put option has:
a) a negative time value.
b) an exercise price lower than the premium.
c) an exercise price higher than the price of the underlying asset.
d) a negative intrinsic value.
An in-the-money option, call or put, has intrinsic value.
An out-of-the-money option, call or put, has no intrinsic value. An at-the-money option, call or put, has an intrinsic value equal to zero.
An option either has intrinsic value or it has no intrinsic value.