Question

A put option contract with a strike price of 30 is said to be _______ if its underlying stock price is 36.

showing the money

at the money

around the money

in the money

out of the money

Answer 1

The Answer is our of money A put option with a strike price that is lower than the market price of the underlying asset is called as out of Money, here strike price is less than underlaying stock price
It is not in the money because - For a put option, when the strike price is above the market price of the underlying asset. In this case strike price is not above underlaying price of security
It is not at the money because - A situation where an option's strike price is identical to the price of the underlying security.-"at the money."
similarly it is not showing the Money and around the money