看不懂解析

问题如下：

Exercise of a European put option is most likely justified if:

选项：

A.

the option is out of the money.

B.

the exercise price exceeds the value of the underlying.

C.

the exercise value is negative.

解释：

B is correct. If the exercise price exceeds the value of the underlying at expiration, the option has positive exercise value and may be exercised.

A is incorrect. An out-of-the-money option should not be exercised and will expire worthless.

C is incorrect. An option that generates a negative cash flow when exercised should not be exercised.