An investor would exercise a put option when the:
A) |
price of the stock is below the strike price. | |
B) |
price of the stock is equal to the strike price. | |
C) |
price of the stock is above the strike price. | |
A put option gives its owner the right to sell the underlying good at a specified price (strike price) for a specified time period. When the stock's price is less than the strike price a put option has value and is said to be in-the-money. |