The Intrinsic Value of an In-The-Money Put Option Is Equal

question 71

Multiple Choice

The intrinsic value of an in-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.
• E)None of the options

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Definitions:

Impermeable

The quality of a material or membrane that does not allow fluids or gases to pass through it.

Oozing Lesions

Refers to wounds or sores that exude fluid, often seen in infections or skin conditions.

Honey-Colored Crust

A description typically used for the appearance of sores or lesions, often associated with impetigo, that form a golden-yellow crust.

Contagious

The characteristic of a disease that allows it to be transmitted from one individual to another through direct or indirect contact.