A Put Option on a Stock Is Said to Be

question 28

Multiple Choice

A put option on a stock is said to be out of the money if

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

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Definitions:

Obtain A License

The process of receiving formal permission from authorized entities to engage in certain activities or professions that are regulated by law.

State Bar Examination

A professional exam that must be passed by a law graduate to be licensed to practice law in a specific state.

Prospective Attorney

An individual who is considering or seeking to become a licensed lawyer.

Texas

A state located in the South Central region of the United States, known for its significant cultural, economic, and historical impact.