What is the exercise value (intrinsic value) at the time of purchase (t = 0) to...
What is the exercise value (intrinsic value) at the time of
purchase (t = 0) to the holder of a put
with strike price $120 if the underlying asset is $125 and the put
premium is $5?
$0
$5
$10
$15
$20
Homework Answers
Intrinsic Value of Put Option = Max((Strike Price - Spot Price), 0)
So,
Intrinsic Value = Max((120 - 125), 0)
Intrinsic Value = $0
Add Answer to:
What is the exercise value (intrinsic value) at the time of
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