A put option (with shares as the underlying asset) was originally purchased for $1.44 and is now trading for $2.82. The exercise price is $34 and the underlying share is currently trading for $31.64. What is the intrinsic value of the option? a. $2.82 b. $0.00 c. $2.36 d. $1.44

A put option (with shares as the underlying asset) was originally purchased for $1.44 and is now trading for $2.82. The exercise price is $34 and the underlying share is currently trading for $31.64. What is the intrinsic value of the option? a. $2.82 b. $0.00 c. $2.36 d. $1.44

Fundamentals of Financial Management (MindTap Course List)

14th Edition

ISBN:9781285867977

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter18: Derivatives And Risk Management

Section18.A: Valuation Of Put Options

Problem 1P

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$2.82

$0.00

$2.36

$1.44

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