A put option has a strike price of $23 and the underlying stock price is $33. 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 "out of the money" when the underlying stock price is above the strike price, as the option gives the right to sell the stock at a price lower than the current market price.

A Put Option Has a Strike Price of $23 and the Underlying