If a Call Option Is "In-The-Money" on the Expiration Date

question 134

Multiple Choice

If a call option is "in-the-money" on the expiration date, the:

• A) Strike price is more than the market price of the stock.
• B) Option is expiring unexercised that day and the seller gets to keep the option premium.
• C) Buyer of the option is getting a refund equal to the option premium paid.
• D) Call has an intrinsic value that is equal to the stock price minus the strike price.
• E) Seller of the call gets to keep the option premium without relinquishing any shares of stock.

---

Definitions:

Refusal To Admit

The act of not accepting someone into a facility or institution, often based on specific criteria or standards.

Standard Communication Model

A theoretical framework describing how messages are transmitted from a sender to a receiver through a medium, incorporating feedback.

Sender

The party that initiates the transmission of a message or data in communication processes.

Receiver

An individual or entity that receives or is meant to receive something, commonly used in telecommunications, finance, and legal contexts.