If a stock is selling for 25 the exercise price of a put opt

If a stock is selling for $25, the exercise price of a put option on that stock is $20, and the time to expiration of the option is 90 days, what are the minimum prices for the put today?

a. 0$ and $20

b. $0 and $5

c. $5 and $20

d. $5 and $25  

Solution

minimum price will be given by = max ( 0 , stirke price - stock price) = $0

& maximum price of the put option is strike price of the option which is $20.

so the correct option will be A.

$0 and $20