单选题 Consider a put option on Deter, Inc. , with an exercise price of $45. The current stock price of Deter is $52. What is the intrinsic value of the put option, and is the put option in-the-money, at-the-money, or out-of-the-money?

A、

A. $0, Out-of-the-money.
B、

B. $7, At-the-money.
C、

C. $7, Out-of-the-money.

【正确答案】 A

【答案解析】The option has an intrinsic value of $O, because the stock price is above the exercise price. Put value is Max (0, X- S). Equivalently, the option is out-of-the-money.