A Put Option with a $35 Exercise Price on ABC

question 37

Multiple Choice

A put option with a $35 exercise price on ABC stock 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:

Engine Recall

An engine recall is a notice from a vehicle manufacturer to return a vehicle to the dealer for corrective action due to a discovered defect in the engine component.

Refund

Money returned to a purchaser in response to a dissatisfaction with goods or services, or cancellation of a service.

Sales Talk

Persuasive conversations or pitches aimed at promoting and selling a product or service.

Odometer

A device used in vehicles to measure and display the total distance the vehicle has traveled.