A Put Option You Own Is Going to Expire in One

question 181

Multiple Choice

A put option you own is going to expire in one second. The current stock price is $25 and the strike price of your option is $30. Which of the following statements is NOT true?

• A) Your option has intrinsic value.
• B) Your option should be exercised or sold.
• C) You have the right to sell the stock for $30.
• D) Someone other than you stands to gain $5 per share when the option is exercised.
• E) Your option is in-the-money.

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Definitions:

Nucleotides

The basic building blocks of nucleic acids like DNA and RNA, consisting of a sugar, a phosphate group, and a nitrogenous base.

Purines

A type of nitrogenous base found in DNA and RNA, including adenine and guanine, which pair with pyrimidines.

Pyrimidines

One of the two classes of nitrogenous bases found in nucleic acids, including cytosine, thymine (in DNA), and uracil (in RNA).

Bacteriophages

Viruses that infect and replicate within bacteria.