Which One of the Following Describes the Intrinsic Value of a Put

question 46

Multiple Choice

Which one of the following describes the intrinsic value of a put option?

• A)lesser of the strike price or the stock price
• B)lesser of the stock price minus the exercise price or zero
• C)lesser of the stock price or zero
• D)greater of the strike price minus the stock price or zero
• E)greater of the stock price minus the exercise price or zero

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Definitions:

Probability

A measure of the likelihood that an event will occur, represented numerically between 0 (impossible) and 1 (certain).

Reactivity

The phenomenon in which the presence of an observer or the awareness of being observed alters the behavior of those being observed.

Reliability

The consistency of a measure or instrument, such that it yields the same results under consistent conditions across multiple trials.

Variability

The degree to which data points in a statistical distribution or data set diverge from the average or mean value.