A put option with a $35 exercise price on ABC stock expires today. The current price of ABC stock is $36. The put is:
A) funded.
B) unfunded.
C) at the money.
D) in the money.
E) out of the money.

Question

Quizplus · Accepted Answer

A put option is "out of the money" when the exercise price is below the current stock price. Since the exercise price is $35 and the stock price is $36, the put option is out of the money.

A Put Option with a $35 Exercise Price on ABC