Which One of the Following Options Is Out of the Money

question 24

Multiple Choice

Which one of the following options is out of the money?

• A)call with a $20 strike and a stock price of $21
• B)put with a $35 strike and a stock price of $33
• C)call with a $45 strike and stock price of $46
• D)put with a $75 strike and a stock price of $70
• E)call with a $50 strike and a stock price of $49

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Definitions:

Optimism

The tendency to hold a hopeful and positive outlook towards future outcomes.

Critical Life Event

A significant occurrence that has a profound impact on an individual's life and perspective.

Balanced Processing

Involves objectively analyzing and evaluating relevant information before making a decision, ensuring a fair and unbiased approach.

Optimism

The inclination to look at the more favorable side of events or conditions and to expect the most favorable outcome.