What Is the Relationship between Intrinsic Value and the Moneyness of a Put Option?

The intrinsic value of a put option increases as the option moves further in-the-money (ITM). Moneyness describes the relationship between the strike price and the underlying price.

For a put, as the underlying price falls below the strike price, the option's intrinsic value increases. Conversely, as the put moves out-of-the-money (underlying price above strike), its intrinsic value drops to zero.