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.
