An Option Whose Exercise Price Is Equal to the Spot

question 23

Multiple Choice

An option whose exercise price is equal to the spot rate is said to be:

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

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Definitions:

Electronic Repair Revenues

Income generated from services related to fixing and restoring electronic devices and equipment.

Expenses

Costs incurred in the process of earning revenue, typically categorized as fixed or variable costs.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to net income or loss.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the ownership interest of the shareholders or owner.