A Stock Currently Sells for $15 Per Share

question 26

Multiple Choice

A stock currently sells for $15 per share. A put option on the stock with an exercise price of $15 currently sells for $1.50. The put option is

• A) at-the-money.
• B) in-the-money.
• C) out-of-the-money.
• D) at breakeven.
• E) above-the-money.

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Definitions:

Coil

In programming and electrical engineering, it refers to a command used in ladder logic for activation or control of outputs.

Energized

Refers to a circuit or component that is under power or has electrical current flowing through it.

Efficiency-Wage Theory

The theory that employers pay workers a higher wage than the equilibrium wage to increase their productivity and efficiency.

Developed Countries

Nations with advanced economic systems, high levels of income per capita, and generally high standards of living.