The current market price of a share of Coca Cola stock is $50. If a put option on this stock has a strike price of $45, the put
A) is out of the money.
B) is in the money.
C) sells for a lower price than if the market price of Coca Cola stock is $40.
D) is out of the money and sells for a lower price than if the market price of Coca Cola stock is $40.
E) is in the money and sells for a lower price than if the market price of Coca Cola stock is $40.

Question

Quizplus · Accepted Answer

The Answer of The current market price of a share of Coca Cola stock is $50. If a put option on this stock has a strike price of $45, the put
A) is out of the money.
B) is in the money.
C) sells for a lower price than if the market price of Coca Cola stock is $40.
D) is out of the money and sells for a lower price than if the market price of Coca Cola stock is $40.
E) is in the money and sells for a lower price than if the market price of Coca Cola stock is $40.

The Current Market Price of a Share of Coca Cola