An in-the-money put option is one that:
A)has an exercise price greater than the underlying stock price.
B)has an exercise price less than the underlying stock price.
C)has an exercise price equal to the underlying stock price.
D)should not be exercised at expiration.
E)should not be exercised at any time.

Question

Quizplus · Accepted Answer

An in-the-money put option occurs when the exercise price is greater than the underlying stock price, allowing the holder to sell the stock at a higher price than the current market value.

An In-The-Money Put Option Is One That