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Put Options and Lower Prices of Underlying Stock Sell

Why do put options with exercise prices lower than the price of the underlying stock sell for postive prices?

a. the holder cn exercise the option immediately
b. The holder can buy the stock, exercise the option immediately, and make a profit
c. At some point in the future, the holder may be able to buy the stock, exercise the option and make a profit

Solution Preview

Why do put options with exercise prices lower than the price of the underlying stock sell for positive prices?

a. the holder can exercise the option immediately
b. The holder can buy the stock, exercise the option immediately, and make a profit ...

Solution Summary

Answers multiple choice question on put options.

$2.19