An Option with an Exercise Price Equal to the Underlying

question 99

Multiple Choice

An option with an exercise price equal to the underlying asset's price is

• A) worthless.
• B) in the money.
• C) at the money.
• D) out of the money.
• E) theoretically impossible.

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Definitions:

FLSA

The Fair Labor Standards Act, which establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards in the United States.

Exempt Employee

An employee who is not entitled to overtime pay as per labor laws, typically salaried and meeting certain criteria regarding their job duties and salary.

Overtime Pay

Additional compensation awarded to eligible employees for hours worked beyond the standard workweek, as defined by labor laws.

Pay Structure

An organized system of compensating employees that defines the different levels of pay for jobs or groups of jobs within an organization.