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:

Services

Actions or activities provided to satisfy the needs and wants of consumers without resulting in the ownership of a tangible product.

Seller

An individual or entity that offers goods or services for sale.

Cash Discount

An incentive for early payment, reducing the buyer's total amount owed.

Net

Net signifies the final amount remaining after all deductions have been made, such as expenses, taxes, or discounts, from a total or gross amount.