What Is the Angle Between the Line from Earth to Mercury

question 30

Multiple Choice

What is the angle between the line from Earth to Mercury and the line from Mercury to the Sun when Mercury is at greatest elongation?

• A) 90°
• B) 180°
• C) anywhere between 0° and 180°, depending on the particular planetary alignment
• D) 0°

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Definitions:

In The Money

Describes an option with an intrinsic value where a call option's strike price is below the market price of the underlying asset or a put option's strike price is above.

Time Value

The additional amount an investor is willing to pay for an option above its intrinsic value, based on the time remaining until its expiration.

Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified timeframe.

In-The-Money

A term used in options trading to describe an option that has intrinsic value, where the strike price is favorable compared to the current market price of the underlying asset.