If a Call Option Is "In-The-Money" on the Expiration Date

question 134

Multiple Choice

If a call option is "in-the-money" on the expiration date, the:

• A) Strike price is more than the market price of the stock.
• B) Option is expiring unexercised that day and the seller gets to keep the option premium.
• C) Buyer of the option is getting a refund equal to the option premium paid.
• D) Call has an intrinsic value that is equal to the stock price minus the strike price.
• E) Seller of the call gets to keep the option premium without relinquishing any shares of stock.

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Definitions:

FAB Demonstration

A sales technique focusing on features, advantages, and benefits of a product to persuade potential buyers.

Response To The Stimulus

The reaction or change in behavior or action of an organism or system as a result of a specific external factor or stimulus.

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales within the industry.

Product Advantage

Product advantage refers to the unique benefits or value that a product offers over its competitors, making it more appealing to customers.