What Term May Be Used to Describe a Long Put

question 18

Multiple Choice

What term may be used to describe a long put position in which the exercise price is below the asset price?

• A) At-the-money
• B) In-the-money
• C) Near-the-money
• D) Out-of-the-money

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Definitions:

Reactive

Reactive, in an electrical context, relates to components or systems that store energy temporarily in electric or magnetic fields, affecting phase angles between voltage and current.

Inductive

Pertaining to inductance, the property of an electrical conductor by which a change in current through it induces an electromotive force (EMF) in both the conductor itself and in any nearby conductors by mutual inductance.

Capacitive

Related to the ability of a system or component to store charge and energy in the electric field, characteristic of capacitors or systems with capacitive elements.

Ripples

Fluctuations or variations in the output voltage of a power supply, often resulting from incomplete suppression of AC waveform within DC output.