The current market price of a share of AT&T 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 AT&T stock is $40.
D)is out of the money and sells for a lower price than if the market price of AT&T stock is $40.

Question

Quizplus · Accepted Answer

The Answer of The current market price of a share of AT&T 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 AT&T stock is $40.
D)is out of the money and sells for a lower price than if the market price of AT&T stock is $40.

The Current Market Price of a Share of AT&T Stock