Question

The current market price of a share of AT&T stock is $50. If a put option on this stock has a strike price of $45, the put sells for a lower price than if the market price of AT&T stock is $40. is out of the money and sells for a lower price than if the market price of AT&T stock is $40. is in the money and sells for a lower price than if the market price of AT&T stock is $40. is in the money. is out of the money.

Answer 1

is out of the money and sells for a lower price than if the market price of AT&T stock is $40

Step-by-step explanation:

the striking price on a put option is more than the market price, the option is out of the money and sells for less than an in the money option