Which of the Following Is an Example of a Call

question 1

Multiple Choice

Which of the following is an example of a call option which is in the money?

• A) The option to sell at $11, the stock is worth $12.
• B) The option to buy at $13, the stock is worth $12.
• C) The option to buy at $12, the stock is worth $12.
• D) The option to sell at $13, the stock is worth $12.
• E) The option to buy at $11, the stock is worth $12.

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Definitions:

Inventory

Goods or materials that a business holds for the purpose of resale or production.

Cash

Money in the form of coins or notes, as opposed to checks, credit, or other forms of payment.

Net Working Capital

Net working capital, a key indicator of short-term financial strength, is determined by subtracting a firm's current liabilities from its current assets, impacting its ability to meet short-term obligations.

Earnings Before Interest And Taxes

An indicator of a firm's earnings, specifically excluding the costs associated with interest and income taxes.