Question

A put option on Dr. Pepper Snapple Group, Inc., has an exercise price of $45. The current stock price is $41. The put option is _________.

a. at the money
b. in the money
c. out of the money
d. knocked out

Answer 1

b. in the money

Step-by-step explanation:

Exercise price = $45

Current stock price = $41

The put option is in the money because the exercise price of the stock ($45) is more than the current stock price ($41).