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:

Meiosis

The form of cell division in which each pair of chromosomes splits so that one member of each pair moves to the new cell. As a result, each new cell has 23 chromosomes.

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of DNA, which carry genetic information.

Genetics

Genetics is the branch of science concerned with genes, heredity, and variation in living organisms, influencing traits that are passed from parents to offspring.

Heredity

The passing on of physical or mental characteristics genetically from one generation to another.