Assume you pay a premium of $0.50/bu for a put option with a strike price of $4.00/bu and that the current futures price is $3.75/bu. Then, the option is:
A. In-the-money
B. At-the-money
C. Out-of-the-money
D. None of the above
Ans: A. In-the-money
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In the United States from 1935 to 2011 the share of total income earned by the bottom fifth of income earners rose and then fell
a. True b. False Indicate whether the statement is true or false
Suppose the government eliminates all environmental regulations and, as a result, the production of goods and services increases, but there is considerably more pollution. Based on this scenario, which of the following statements is correct?
a. GDP would definitely increase, despite the fact that GDP includes environmental quality. b. GDP would definitely decrease because GDP includes environmental quality. c. GDP would definitely increase because GDP excludes environmental quality. d. GDP could either increase or decrease because GDP excludes environmental quality.