The Current Market Price of a Share of CAT Stock

question 17

Multiple Choice

The current market price of a share of CAT stock is $76. If a put option on this stock has a strike price of $80, the put

• A) is out of the money.
• B) is in the money.
• C) can be exercised profitably.
• D) is out of the money and can be exercised profitably.
• E) is in the money and can be exercised profitably.

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Definitions:

Upper Class Limits

The maximum value within a class interval in a frequency distribution, where classes are used to group data.

Class Width

In statistics, the difference between the upper and lower boundaries of a class interval in a frequency distribution.

Categorical Data

Data that represent categories - qualitative data that can be divided into group or categories.

Quantitative

Referring to data or information that can be measured and expressed numerically.