Skip to main content

What Is the Formula for Intrinsic Value of a Put Option?

The formula for the intrinsic value of a put option is the maximum of (Strike Price – Underlying Price) or zero. The value is positive only if the strike price is greater than the underlying price, meaning the option is in-the-money.

How Does the Signed Integer Type Change the Definition of Overflow/underflow?
Provide the Formula for Calculating the Intrinsic Value of a Put Option
What Is the Maximum Profit and Loss Potential of a Covered Call?
What Is the Maximum Profit and Loss Potential of a Covered Call Strategy?