In June 2007, an Investor Buys a Put Option on Genentech

question 57

Multiple Choice

In June 2007, an investor buys a put option on Genentech stock with an exercise of price
Of $75 and expiring in January 2009. If the stock price in June 2007 is $80, then this option is:
I. in-the-money
II. out-of-the-money
III. a LEAPS

• A) I only
• B) II only
• C) III only
• D) I and III only