A Put Option on a Stock Is Said to Be

question 59

Multiple Choice

A put option on a stock is said to be out of the money if

• A)the exercise price is higher than the stock price.
• B)the exercise price is less than the stock price.
• C)the exercise price is equal to the stock price.
• D)the price of the put is higher than the price of the call.

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Definitions:

Visuals

Graphic elements such as diagrams, photographs, or videos that assist in communicating a message or information.

Appendix

A section at the end of a document or book that contains additional information related to the main text, such as tables, figures, or references.

Numbering Visuals

A method for organizing and referring to visual elements such as figures, tables, or diagrams within a document by assigning them specific numbers.

Schemes

Schemes typically refer to systematic plans or arrangements for achieving particular objectives, often associated with artistic or literary patterns.