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.
E) is in the money and sells for a higher price than if the strike price of the put option was $23.
Correct Answer:

Verified
Correct Answer:
Verified
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