A put option on a stock has an exercise price of $40 and expiry date of 1 month. The options bid and ask are $3.00 and $3.20, respectively. If the current market price of the underlying stock is $38, which of the following is true?

Select one:

a. The profit would be zero if the put is exercised today.

b. The intrinsic value of the put is $2.00

c. The put option is worthless.

d. The put option can be sold at $3.20.

e. None of the THESE are true.