A Put Option Described as Out of the Money Would

question 110

Multiple Choice

A put option described as out of the money would find:

• A) the strike price is below the market price of the stock.
• B) the market price of the stock and the strike price are equal.
• C) the market price of the stock is below the strike price.
• D) the option has expired.

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Definitions:

Methane Molecule

A chemical compound with the formula CH4, the simplest alkane and the main component of natural gas, consisting of one carbon atom surrounded by four hydrogen atoms.

Polarity

Polarity in chemistry refers to the distribution of electrical charge over atoms or molecules, causing them to have a dipole moment with partially positive and negative charges.

Ethanol

An organic compound, also known as alcohol, with the formula C2H5OH, widely used as a solvent, in the manufacture of various goods, and as a renewable fuel.

Hexane

A hydrocarbon compound with six carbon atoms and 14 hydrogen atoms, often used as a non-polar solvent.