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

question 56

Multiple Choice

The intrinsic value of an at-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 above.

---

Definitions:

Hypothesis

A preliminary hypothesis presented upon scant evidence, aimed at instigating further exploration.

Null Hypothesis

A statement used in statistical testing which suggests that there is no significant effect or difference.

Directional Research Hypothesis

A hypothesis that predicts not only that a relationship exists between variables but also the direction of that relationship.