The Current Market Price of a Share of a Stock

question 31

Multiple Choice

The current market price of a share of a stock is $80. If a put option on this stock has a strike price of $75, the put

• A) is in the money.
• B) is at the money.
• C) sells for a lower price than if the market price of the stock is $75.
• D) is in the money and sells for a lower price than if the market price of the stock is $75.
• E) is out of the money and sells for a lower price than if the market price of the stock is $75.

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Definitions:

Extinction Processes

In behavioral psychology, the gradual reduction and eventual disappearance of a conditioned response following the cessation of reinforcement.

Observational Learning

A learning process through which behaviors are acquired by watching and imitating others.

Attentional Processes

The mental activities involved in focusing on specific stimuli while ignoring others, and the mechanisms by which individuals select information for processing.

Guided Participation

A teaching and learning interaction where an expert helps a learner engage in and understand activities within their zone of proximal development.