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If a Microsoft January 20 Put Option with a Strike

Question 87

Multiple Choice

If a Microsoft January 20 put option with a strike price of $20 was selling for $5.00 and the market price of the underlying Microsoft stock was $15.00,the price of the put option would be _______________.


A) in-the-money
B) out-of-the-money
C) fairly priced
D) not enough information to tell

Correct Answer:

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