A Put Option with Several Months Until Expiration Has a Strike

question 80

Multiple Choice

A put option with several months until expiration has a strike price of $55 when the stock price is $50. The option has ________ intrinsic value and ________ time value.

• A) negative; positive
• B) positive; positive
• C) zero; zero
• D) zero; positive

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Definitions:

Videotaped Conversation

A recorded interaction between individuals on video, used for analysis or study.

Equal Participation

The concept that all members of a group have the same opportunity and responsibility to contribute to a process or activity.

Self-Handicapping

A cognitive strategy by which people avoid effort in the hopes of keeping potential failure from hurting self-esteem.

Disadvantage

A circumstance or condition that unfavorably affects someone, reducing their chances of success.