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The Current Market Price of a Share of a Stock

Question 91

Multiple Choice

The current market price of a share of a stock is $80. If a put option on this stock has a strike price of $75, the put


A) is in the money.
B) is out of the money.
C) sells for a lower price than if the market price of the stock is $75.
D) is in the money and sells for a lower price than if the market price of the stock is $75.
E) is out of the money and sells for a lower price than if the market price of the stock is $75.

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