A Put Option Is Out of the Money If the

question 32

Multiple Choice

A put option is out of the money if the

• A) expiration date is more than six months.
• B) market price is greater than the exercise price.
• C) the stock declares a dividend.
• D) market and exercise prices are equal.

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Definitions:

Chicago School

refers to a school of economic thought that promotes free-market principles and holds that economic freedom leads to economic development.

Traditional Antitrust

Laws and regulations designed to protect trade and commerce from unlawful restraints, monopolies, and unfair business practices.

Primary-Line Injury

Under the Robinson-Patman Act, an injury that occurs when preferential treatment is given to a competitor.

Antitrust Action

Legal proceedings or actions taken by government regulators or private parties to prevent or remedy anti-competitive practices, monopolies, or other violations of antitrust laws.