If a Microsoft January 20 Put Option Had a Strike

question 153

Multiple Choice

If a Microsoft January 20 put option had a strike price of $20 and the market price of the underlying Microsoft stock was $15.00, 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:

Net Loss

The result when a company's total expenses exceed its total revenues, indicating a negative profit for the accounting period.

Gross Rental Income

The total income received from renting out a property before any expenses are deducted.

Schedule E

A tax form used to report income or loss from rental property, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.

Schedule C

Schedule C is a tax form used by sole proprietors to report business income and expenses for tax purposes.