What is the exercise value intrinsic value at the time of pu

What is the exercise value (intrinsic value) at the time of purchase (t = 0) of a put with strike price $205 if the underlying asset is $185 and the put premium is $25?

$0

$5

$10

$15

$20

Solution

For a put option, the intrinsic value is the strike price minus the underlying price.

Therefore , intrinsic value =$205-$185=$20

Thanks