The Intrinsic Value of an Out-Of-The-Money Put Option Is Equal

question 14

Multiple Choice

The intrinsic value of an out-of-the-money put option is equal to

• A) the stock price minus the exercise price.
• B) the put premium.
• C) zero.
• D) the exercise price minus the stock price.

---

Definitions:

Oceanic Divergent Boundaries

Boundaries between tectonic plates that are moving away from each other, often resulting in the formation of new oceanic crust through volcanic activity.

Conveyor-belt Manner

A way of describing the movement and recycling of materials, often used in the context of plate tectonics and ocean currents.

Asthenosphere

A region of the Earth's upper mantle that lies just below the lithosphere and is involved in plate tectonic movements due to its plasticity.

Mid-ocean Ridges

Underwater mountain ranges formed by the upwelling of magma where tectonic plates are diverging, key sites of seafloor spreading.