Multiple Choice
Gordon is considering purchasing either a call or a put option on XYZ stock. Each of the options has an exercise price of $40 and XYZ is trading at $44.50 per share. Which of the following statements about the options is correct?
A) The put option is in the money, whereas the call option is out of the money.
B) The call option is in the money, whereas the put option is out of the money.
C) Both the put and the call option are in the money.
D) Both the put and the call option are out of the money.
Correct Answer:
Verified
Correct Answer:
Verified
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