The Current Market Price of a Share of AT&T Stock

question 85

Multiple Choice

The current market price of a share of AT&T stock is $50. If a put option on this stock has a strike price of $45, the put

• A) is out of the money.
• B) is in the money.
• C) sells for a lower price than if the market price of AT&T stock is $40.
• D) is out of the money and sells for a lower price than if the market price of AT&T stock is $40.
• E) is in the money and sells for a lower price than if the market price of AT&T stock is $40.

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Definitions:

Wavelength

The distance between successive crests of a wave, especially points in a sound wave or electromagnetic wave.

Crests

The peaks or highest points of a wave, often used in the context of waves in physics or oceanography.

Amplitude

In physics, it refers to the maximum extent of a vibration or oscillation, measured from the position of equilibrium.

Rods

Photoreceptors in the retina of the eye that are responsible for vision at low light levels, but cannot discern color.