Explanation

At expiration, the value of an option is determined by its intrinsic value only (time value is zero at expiration).

Let's calculate the intrinsic value for each option:

Option A: Put with exercise price = 72, underlying price = 83

• Put option value = max(0, exercise price - underlying price) = max(0, 72 - 83) = max(0, -11) = 0
• This put is out-of-the-money (underlying price > exercise price)

Option B: Put with exercise price = 83, underlying price = 72

• Put option value = max(0, exercise price - underlying price) = max(0, 83 - 72) = max(0, 11) = 11
• This put is in-the-money (underlying price < exercise price)

Option C: Call with exercise price = 83, underlying price = 70

• Call option value = max(0, underlying price - exercise price) = max(0, 70 - 83) = max(0, -13) = 0
• This call is out-of-the-money (underlying price < exercise price)

Comparison:

• Option A value = 0
• Option B value = 11
• Option C value = 0

Therefore, Option B has the greatest value at expiration with an intrinsic value of 11.

Key Concept: At expiration, option value equals intrinsic value only. For puts: value = max(0, exercise price - underlying price). For calls: value = max(0, underlying price - exercise price).