A Good Example of a "Black Hole" That Eats Up

question 50

Multiple Choice

A good example of a "black hole" that eats up your time is

• A)an assignment that takes too long.
• B)time spent at work.
• C)class time.
• D)a long, unexpected phone call.

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Definitions:

Exercise Price

The specified price at which the holder of an option can buy (call option) or sell (put option) the underlying asset.

Bullish Outlook

An expectation that a market, security, or economy will rise in value in the foreseeable future.

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.