section 2 unit 6…
Since the strike price is 100 and stock is trading at 95 means it is out of money for put option. And in the video it is mentioned that for out of money there is no interenstic value. So how come the answer is 5?
If strike price is 100, & stock is trading at 95 it means that its IN THE MONEY for put option , therefore 5 is the intrinsic value.