A put option on ABC stock with an exercise price of $35 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

The put option is out of the money since the exercise price of $35 is below the current stock price of $36. Therefore, there is no benefit to exercising the put option at this time.

A Put Option on ABC Stock with an Exercise Price