If a Microsoft January 20 Put Option with a Strike

question 87

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 $15.00,the price of the put option would be _______________.

• A)in-the-money
• B)out-of-the-money
• C)fairly priced
• D)not enough information to tell

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Definitions:

Rejection Region

The range of values in hypothesis testing that if the test statistic falls into, leads to the rejection of the null hypothesis.

Ice Cream Flavors

Various unique tastes of ice cream created by altering ingredients and mixtures in its production.

Random Sample

A sample drawn from a population in such a way that every member of the population has an equal chance of being selected.

Sales Data

Information collected about the number of products or services sold in a given time period.