Which of the following is an example of a put option which is out of the money?
A) The option to sell at $11, the stock is worth $12.
B) The option to buy at $13, the stock is worth $12.
C) The option to buy at $12, the stock is worth $12.
D) The option to sell at $13, the stock is worth $12.
E) The option to buy at $11, the stock is worth $12.

Question

Quizplus · Accepted Answer

A put option is out of the money when the strike price is below the current market price of the stock. In option A, the strike price ($11) is below the stock price ($12).

Which of the Following Is an Example of a Put