Question

A three-month HP put option with an exercise price of $60 sells for a premium of $8. The put is in the money only if the price of HP stock is ______________. greater than $68 per share greater than $60 per share less than $60 per share less than $52 per share

Answer 1

Answer:

less than $60 per share

Explanation:

A put option is the money when the exercise price is greater than the asset price, thus the put has to be less than $60

Answer 2

Answer:

Is less than $60 per share

Explanation:

Put options are commonly or mostly used in the stock market to protect stocks against a fall in the price of a stock below a set or assigned price. The put option in this case can only be used if the price is lass than $60 per share .