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.

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Definitions:

Quality

pertains to the degree of excellence or superiority that a product, service, or process possesses.

Manufacturing Design

The process of developing the design of a product to be manufactured, focusing on the technical specifications and requirements.

Dents

Minor physical damage or deformities often resulting from impact, which can occur on surfaces or objects such as vehicles, appliances, or phones.

Scratches

Marks or superficial injuries caused by something sharp or abrasive, affecting surfaces or skins.