Is it reasonable that For Stock ABC with the December next year Forward at $460 A PUT option on ABC, with a strike of $500, costs $35 A No because the minimum intrinsic is $40 B Yes because it depends on the distribution that is defined by the volatility and time to maturity C No, because $35 feels low for a stock with such a high price per share D Yes because it can be that Intrinsic is $40, Extrinsic negative $5

Question

Is it reasonable that  For Stock ABC with the December next year Forward at  $460  A PUT option on ABC, with a strike of $500, costs $35  A  No because the minimum intrinsic is $40  B  Yes because it depends on the distribution  that is defined by the volatility and time to maturity C  No, because $35 feels low for a stock with such a high price per share  D  Yes because it can be that Intrinsic is $40, Extrinsic negative $5

Accepted Answer

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	A.	No because the minimum intrinsic is $40.
	B.	Yes because it depends on the distribution; that is defined by the volatility and time to maturity
	C.	No, because $35 feels low for a stock with such a high price per share.
	D.	Yes because it can be that Intrinsic is $40, Extrinsic negative $5

Question

Is it reasonable that: For Stock ABC with the December next year Forward at: $460. A PUT option on ABC, with a strike of $500,

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