A Put Option Is "Out of the Money" When the

question 12

Multiple Choice

A put option is "out of the money" when the

• A)market price of the security exceeds the exercise price.
• B)market price of the security equals the exercise price.
• C)market price of the security is less than the exercise price.
• D)premium on the option is less than the exercise price.

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Definitions:

Significant Impairment

A considerable reduction or deterioration in the ability to perform normal functions or activities, often used in clinical contexts.

Abnormal Anxiety

Excessive worry or fear that is out of proportion to the actual situation and interferes with daily functioning.

Excessive

Going beyond the usual, necessary, or proper limit or degree; characterized by overindulgence or immoderation.

Antisocial Personality Disorder

The diagnosis given a person who is in frequent conflict with society, yet who is undeterred by punishment and experiences little or no guilt and anxiety.