SIE practice questionmediumIn/At/Out of the money
A 75 strike put with the stock at $80 is:
- AIn the money
- BAt the money
- COut of the money✓ Correct answer
- DDeep in the money
Explanation
Why C — Out of the money
A put is out of the money when the market price is above the strike. In the money would require a stock price below strike; at the money means they are equal.
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