The Current Market Price of a Share of IBM Stock

question 48

Multiple Choice

The current market price of a share of IBM stock is $76. If a put option on this stock has a strike price of $80, the put

• A) is out of the money.
• B) is at the money.
• C) can be exercised profitably.
• D) is out of the money and can be exercised profitably.
• E) is in the money and can be exercised profitably.

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Definitions:

Wide Exposure

Having extensive experience or knowledge in a variety of fields or activities.

Positive Attitude

A mental state that anticipates the best possible outcome from any situation.

Fulltime Employment

A work arrangement where an individual is employed by an organization for the maximum number of hours considered standard, typically with benefits such as health insurance and paid leave.

Second Interview

A subsequent meeting in the hiring process where a candidate is further assessed for their suitability for a position.