A put option with a strike price of $20 is expiring today. The share is currently selling at $25. Based on this information, the put option should not be exercised.

Question

Quizplus · Accepted Answer

If the share is currently selling at $25 and the put option has a strike price of $20, it would not make sense to exercise the put option since the investor could sell the share on the open market for a higher price than the strike price of the put option. Therefore, the answer is A.

A Put Option with a Strike Price of $20 Is