Which of the Following Statements Is a True Definition of an Out-Of-The-Money

question 16

Multiple Choice

Which of the following statements is a true definition of an out-of-the-money option?

• A) A call option in which the stock price exceeds the exercise price.
• B) A call option in which the exercise price exceeds the stock price .
• C) A call option in which the exercise price exceeds the stock price.
• D) A put option in which the exercise price exceeds the stock price.
• E) A call option in which the call premium exceeds the stock price.

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Definitions:

Proposition

A statement that expresses a complete thought and can be either true or false.

Premise

A proposition in an argument that supports the conclusion.

Premise Indicator

Words or phrases used in arguments to signal the beginning of a premise, such as "because," "since," or "for the reason that."

Therefore

A conjunction used to introduce a logical conclusion from the information previously provided.