A put option on a stock is said to be out of the money if
A)the exercise price is higher than the stock price.
B)the exercise price is less than the stock price.
C)the exercise price is equal to the stock price.
D)the price of the put is higher than the price of the call.

Question

Quizplus · Accepted Answer

A put option is out of the money when the exercise price is less than the stock price, meaning exercising the option would not be profitable.

A Put Option on a Stock Is Said to Be