Which One of the Following Is Moving Sideways Outward

question 5

Multiple Choice

Which one of the following is moving sideways outward?

• A) Flexion
• B) Adduction
• C) Abduction
• D) Extension

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Definitions:

At The Money

The option’s exercise price and the price of the underlying asset are equal.

Out Of The Money

Out of the money describes an option where exercise would result in a negative cash flow. Out-of-the-money options are therefore never exercised.

In The Money

Describes an option whose exercise would produce a positive cash flow. Out of the money describes an option where exercise would result in a negative cash flow.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company, based on fundamentals, without regard to market value.