You own both a May 20 call and a May 20 put. If the call finishes in the money, then the put will:

Question

Quizplus · Accepted Answer

EIf the call option finishes in the money, it means the stock price is above the strike price. Consequently, the put option, which benefits from a decrease in the stock price, will finish out of the money since the stock price is above the strike price. However, depending on the exact stock price at expiration, the put could also be at the money if the stock price exactly equals the strike price, hence both C and E are correct.

You Own Both a May 20 Call and a May