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The Current Market Price of a Share of a Stock

Question 82

Multiple Choice

The current market price of a share of a stock is $20.If a put option on this stock has a strike price of $18, the put


A) is out of the money.
B) is in the money.
C) sells for a higher price than if the strike price of the put option was $23.
D) is out of the money and sells for a higher price than if the strike price of the put option was $23.

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