Use the table for the question(s) below.
Consider the following information on options from the CBOE for Rackspace.

-How many of the December 2010 put options are in-the-money?
A) 1
B) 2
C) 3
D) 4

Question

Use the table for the question(s) below.
Consider the following information on options from the CBOE for Rackspace.
 
-How many of the December 2010 put options are in-the-money?
A) 1 
B) 2 
C) 3 
D) 4

Quizplus · Accepted Answer

B) For a put option to be in-the-money, its current stock price must be less than the exercise price. The current stock price for Rackspace is $30.09, so the put options with strike prices of $31 and $32 are in-the-money. There are two put options in-the-money.

Use the Table for the Question(s) Below