A Put Option on ABC Stock with an Exercise Price

question 88

Multiple Choice

A put option on ABC stock with an exercise price of $35 expires today.The current price of ABC stock is $36.The put is:

• A)funded.
• B)unfunded.
• C)at the money.
• D)in the money.
• E)out of the money.

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Definitions:

Book

A written or printed work consisting of pages glued or sewn together along one side and bound in covers.

Debt

Money owed by one party, the debtor, to another, the creditor, typically arising from a loan or credit agreement.

Incidental Beneficiary

A person or entity who unintentionally gains a benefit from a contract between two other parties, though the contract was not specifically intended for their benefit.

Contractual Rights

Legal entitlements derived from agreements between parties that are enforceable by law.