A Call Option Whose Exercise Price Is Less Than the Spot

question 65

Multiple Choice

A call option whose exercise price is less than the spot price is said to be:

• A) in-the-money.
• B) at-the-money.
• C) out-of-the-money.
• D) under-the-spot.

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Definitions:

Ledger Accounts

Individual records providing detailed information about all the transactions related to a specific account, kept in the ledger of a company.