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:

Excess Demand

A situation where the quantity demanded of a good exceeds the quantity supplied at a given price, often leading to upward pressure on prices.

Equilibrium Quantity

The quantity of goods or services at which demand equals supply, leading to a stable market condition.

Minimum Wage

The lowest legal wage that can be paid to most workers.

Unskilled Workers

Laborers who have limited or no special skills or training, often employed in relatively simple tasks.