A put option has a strike price of $33 and the underlying stock price is $25. The moneyness of this put option is best described as:
A) in the money.
B) at the money.
C) out of the money.

Question

Quizplus · Accepted Answer

A put option is considered "in the money" when the strike price is above the current market price of the underlying asset. In this case, with a strike price of $33 and the underlying stock price at $25, the put option is in the money because the holder can sell the stock at the higher strike price.

A Put Option Has a Strike Price of $33 and the Underlying