If a Microsoft January 20 Put Option with a Strike

question 88

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 $18.00, the price of the put option would be _______________.

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

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Definitions:

Sensory Demand

The requirement for engaging the senses to process and respond to environmental stimuli.

Information Overload

The state of being overwhelmed by the amount of information one is exposed to, making it difficult to process or make decisions.

Information-Processing Capacity

The maximum amount of information an individual or organization can effectively handle and process.

Information Load

The point at which the volume of information exceeds an individual's capacity to process it.