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Math Help - Short question, asap

  1. #1
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    Short question, asap

    For a long put option, should the current stock price (not the stock price at maturity) be higher than the strike price?
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  2. #2
    GAMMA Mathematics
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    Quote Originally Posted by mhnsf22 View Post
    For a long put option, should the current stock price (not the stock price at maturity) be higher than the strike price?
    A put values the amount the strike price is over the stock price. If you are long in a put, you want K > S. However, if you are short, then you want S > K.
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  3. #3
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    I see. Thank you!
    Can you please take a look at my other question under the title "Short question"?
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