A Put Option on Snapple Beverage Has an Exercise Price

question 36

Multiple Choice

A put option on Snapple Beverage has an exercise price of $30. The current share price of Snapple Beverage is $24.25. The put option is ________.

• A)at the money
• B)in the money
• C)out of the money
• D)knocked out

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Definitions:

Social Loafing

Social loafing refers to the phenomenon where individuals exert less effort when working in a group than when working alone.

Exert Less Effort

The phenomenon where individuals decrease the amount of physical or mental energy put into tasks, often observed when they perceive less reward or recognition.

Working Alone

The act of performing tasks or duties without the aid or presence of others.

Groupthink

A psychological phenomenon in which people strive for consensus within a group to the extent that they set aside their own personal beliefs or adopt the opinion of the rest of the group.