Consider BS-model with parameters: Stock = 100, Strike = 100, Texp = 1 year, Vol = 13%, Rf Rate = 3%. For these parameters the BS put price is 3.76. Then consider the same parameters but with Texp = 20 years. The new BS put price is 3.29. Consider now Texp = 100 years. The put price is even lower still at 0.09.
What gives? Does it make sense that longer expiry options can be valued less?