When Is a Stock Option Said to Be In-The-Money

question 96

Multiple Choice

When is a stock option said to be in-the-money?

• A)When the exercise price is greater than the average issue price of the shares.
• B)When the exercise price is greater than the market price of the shares.
• C)When the option is able to be exercised.
• D)When the exercise price is less than the market price of the shares.

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Definitions:

Resource

An asset or input used to produce goods and services, such as labor, capital, land, and knowledge.

Nonrenewable Resource

A natural resource that cannot be readily replaced by natural means at a quick enough pace to keep up with consumption.

User Cost

The cost of using a good or service, including the opportunity cost of forgone alternatives and depreciation.

Extracting

The process of removing or obtaining a raw material from a mix, usually by physical, chemical, or mechanical means.