You currently own a put option on Stock X with a strike price of $25.If the current price of Stock X is $30,then what is the in-the-money amount of the option?

Question

Quizplus · Accepted Answer

A put option is in-the-money when the stock price is below the strike price. Since the stock price is $30 and the strike price is $25, the option is out-of-the-money, and the in-the-money amount is $0.

You Currently Own a Put Option on Stock X with a Strike