Answer: $0

## Explanation **Intrinsic value of a put option** is calculated as: \[ \text{Intrinsic Value} = \max(\text{Strike Price} - \text{Stock Price}, 0) \] Given: - Stock price = $25 - Strike price = $20 Calculation: \[ \text{Intrinsic Value} = \max(20 - 25, 0) = \max(-5, 0) = 0 \] Since the strike price ($20) is **less than** the current stock price ($25), the put option is **out-of-the-money** and has **zero intrinsic value**. **Key points:** - For put options: intrinsic value exists only when stock price < strike price - When stock price > strike price, the put option has no intrinsic value - The option may still have time value (extrinsic value) due to the remaining time until expiration

Author: LeetQuiz .