A Put Option Has an Intrinsic Value of Zero If

question 78

Multiple Choice

A put option has an intrinsic value of zero if the option is

• A)at the money.
• B)out of the money.
• C)in the money.
• D)at the money and in the money.
• E)at the money and out of the money.

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability in a set of data points, often used to gauge the risk associated with a financial asset.

Good Economy

A state of economic health in which a nation experiences growth, low unemployment, and increasing wealth among its population.

Poor Economy

A state of economic performance characterized by low growth rates, high unemployment, and generally declining business activity.