What Is the Meaning of "At-The-Money Options

question 96

Multiple Choice

What is the meaning of "at-the-money options"?

• A)An option is at-the-money when the market price means that it will be exercised.
• B)An option is at-the-money if the market price of the share equals the exercise price.
• C)An option is at-the-money if the market price of the share is less than the exercise price.
• D)An option is at-the-money if the market price of the share exceeds the exercise price.

---

Definitions:

Consumption Spending

Expenditures by individuals and households on goods and services for personal use.

Aggregate Supply

The total supply of goods and services that firms in an economy are willing and able to sell at a given price level in a specific period.

Government Purchases

Expenditures by the government on goods and services that directly increase the economy's productive capacity.

Autonomous Net Taxes

Taxes that are not influenced by the level of economic activity, such as fixed taxes.