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

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Definitions:

Internal Traits

Characteristic or qualities within a person that influence their behavior and attitude, often considered part of one's personality.

Separation Anxiety Disorder (SAD)

An extreme form of normal separation anxiety that is characterized by anxiety about separating from parents; SAD often takes the form of school refusal.

Social Anxiety

Social Anxiety is a chronic mental health condition characterized by an intense fear or anxiety of being judged, negatively evaluated, or rejected in a social or performance situation.

Erikson

Refers to Erik H. Erikson, a developmental psychologist known for his theory on the psychological development of humans, marked by eight stages from infancy to adulthood.