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:

International Trade

The exchange of goods and services across international borders, driven by comparative advantage, which allows for increased efficiency and welfare.

Wooden Furniture

Furniture made from wood materials, valued for its aesthetics, durability, and inherent natural beauty.

Price

The amount of money expected, required, or given in payment for something.

Export

The act of sending goods or services from one country to another for sale or trade.