If a Microsoft January 20 Put Option with a Strike

question 164

Multiple Choice

If a Microsoft January 20 put option with a strike price of $20 was selling for $5.00 and the market price of the underlying Microsoft stock was $10.00, the price of the put option would be _______________.

• A) in-the-money
• B) out-of-the-money
• C) fairly priced
• D) frozen

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Definitions:

Integrative Devices

Tools or systems that unify multiple functionalities or data sources for cohesive use.

Liaison Personnel

Individuals or staff members responsible for managing communication and coordination between different departments or organizations.

Authoritative Command

A form of leadership where orders are given with authority, often without question or input from subordinates.

Avoidance

A behavioral or cognitive strategy aimed at preventing unpleasant emotions, confrontation, or failure by staying away from certain tasks, situations, or interactions.