In the Options Markets a Put Option Is Said to Be

question 62

Multiple Choice

In the options markets a put option is said to be out-of-the money if the:

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

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Definitions:

Trade Deficit

A situation where a country's imports of goods and services exceed its exports of them.

Peso Price

The value of a good or service expressed in pesos, the currency of various Latin American countries.

Exchange Rate Appreciation

Exchange rate appreciation refers to the increase in value of one currency relative to another, meaning you need fewer units of the appreciating currency to buy one unit of another currency.

Domestic Deflation

A decline in the general price level of goods and services within a domestic economy over a period of time.