A Put Option on a Stock Is Said to Be

question 28

Multiple Choice

A put option on a stock is said to be out of the money if

• A) the exercise price is higher than the stock price.
• B) the exercise price is less than the stock price.
• C) the exercise price is equal to the stock price.
• D) the price of the put is higher than the price of the call.
• E) the price of the call is higher than the price of the put.

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Definitions:

Intimate Zone

Refers to the physical space immediately surrounding an individual, typically reserved for those with whom they are emotionally close.

Status Cues

Visual indicators of other people’s social position.

Social Position

An individual's rank or status within a society, determined by factors like wealth, occupation, and societal roles.

Role Distancing

Role distancing involves giving the impression that one is just “going through the motions” and actually lacks serious commitment to a role.