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 options are correct.

Intrinsic Value

The inherent worth of a company, stock, or security, based on fundamental analysis without reference to its market value.

At-the-money

A term used in options trading to describe an option whose strike price is identical to the current price of the underlying asset.

Put Option

A financial contract giving the buyer the right, but not the obligation, to sell a particular asset at an agreed-upon price within a specified time.