Question
How do you classify a put option as out-of-the-money?
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Answer
When X<S.
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Question
What is the minimum value of a European put?
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Answer
max(0,(1+r)TX−S0).
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Question
What does intrinsic value measure for an option?
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Answer
The immediate gain from exercising now.
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Question
If a put has spot price below exercise price, how would you classify its moneyness?
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Answer
In-the-money.
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