Let’s say a trader bought an 85 strike put for $1.75. When he bought it, $0.50 of that premium was extrinsic value. If this option expires OTM, how much intrinsic value does it have at expiration?

$0.00

Explanation:

In an OTM option, there's only extrinsic value and absolutely no intrinsic value.

OTM Options price are in its entirety, made up of only extrinsic value, therefore, the price of any at the money option or out of the money is solely comprised of of extrinsic value.

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