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sweet [91]
2 years ago
14

If a call option has a $10 strike price, and the underlying stock is trading at $11, then the option is considered: a. in the mo

ney. b. at the money. c. out of the money. d. worthless.
Business
1 answer:
kogti [31]2 years ago
7 0

In the money

Put option holders have the choice, but not the duty, to sell shares of the underlying security by a specific date and at a certain price.

When the strike price of a put option is more than the market value of the underlying securities, the option is said to be in the money.
Put options are frequently used by investors as downside protection to limit or stop a value decline.
If the price of the underlying asset increases, puts can offer investors limited risk exposure to the short market.
The time value of a put option, which is the additional premium an investor will pay above the option's intrinsic value, can also have an impact on the option's value.
To learn more about In the money please visit -
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