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CTP · Question #801

CTP Question #801: Real Exam Question with Answer & Explanation

The correct answer is B. exceeds the strike price.. See the full explanation below for the reasoning.

Question

  • (Topic 9) A put option is out of the money when the asset price:

Options

  • Ais less than the strike price.
  • Bexceeds the strike price.
  • Cis unchanged relative to the purchase price.
  • Dis equal to the strike price.

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