Use the table for the question(s) below.
Consider the following information on options from the CBOE for Merck:
-How many of the January 2009 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 Merck: 
-How many of the January 2009 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 Merck is $41.95, so only the put options with strike prices of $45.00 and $50.00 are in-the-money. So there are two put options in-the-money.

Use the Table for the Question(s) Below