ACI
3I0-012 · Question #42
A put option is `out-of-the-money' if:
The correct answer is B. If the current market price of the underlying commodity is higher than the strike price of the option. See the full explanation below for the reasoning.
Question
A put option is `out-of-the-money' if:
Options
- AIts strike price is higher than the current market price of the underlying commodity
- BIf the current market price of the underlying commodity is higher than the strike price of the option
- CIts strike price is equal to the current market price of the underlying commodity
- DIf the current market price of the underlying commodity is lower than the strike price of the option
How the community answered
(27 responses)- A15% (4)
- B70% (19)
- C4% (1)
- D11% (3)
Community Discussion
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