A put option on Snapple Beverage has an exercise price of $30. The current share price of Snapple Beverage is $24.25. The put option is ________.
A)at the money
B)in the money
C)out of the money
D)knocked out

Question

Quizplus · Accepted Answer

A put option is "in the money" when the exercise price is above the current share price. Here, the exercise price is $30, and the current share price is $24.25, making the put option in the money.

A Put Option on Snapple Beverage Has an Exercise Price