Which Student Is Most at Risk for Dropping Out of College

question 54

Multiple Choice

Which student is most at risk for dropping out of college?

• A)Zach,a sophomore at a large state university
• B)Destinee,a freshman a highly selective school
• C)Kai,a sophomore who moves off-campus
• D)Ian,a freshman at a school with open enrollment

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Definitions:

Out-of-the-money

A term used in options trading referring to options that would not make a profit if exercised immediately because their strike price is unfavorable compared to the current market price.

In-the-money

Describes an option with intrinsic value; for a call option, when the underlying asset's price is above the strike price; for a put option, when it's below.

Put Option

A financial contract that gives the buyer the right, but not the obligation, to sell an underlying asset at a specified price within a certain timeframe.

Exercise Price

Exercise price is the specified price at which the holder of an option can buy (call) or sell (put) the underlying security or commodity.