The intrinsic value of an in-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.

In-the-money

Describes an option that has intrinsic value, where a call option's strike price is below the market price of the underlying asset, or a put option's strike price is above it.

Intrinsic Value

The perceived or calculated real value of an asset, investment, or company based on fundamental analysis without regard to its market value.

Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a specified time frame.