Can the value of a put option be negative? Why?
Premiums will be always positive or zero but can’t be negative assuming all assets will have positive prices or zero.
both call and put often trades below its intrinsic value but never below zero
Can the value of a put option be negative? Why?
Premiums will be always positive or zero but can’t be negative assuming all assets will have positive prices or zero.
both call and put often trades below its intrinsic value but never below zero