Which One of the Following Terms Is Defined as an Option

question 25

Multiple Choice

Which one of the following terms is defined as an option that would have a positive payoff if exercised now?

• A)in-the-money option
• B)out-of-the-money option
• C)straddle option
• D)crossed option
• E)cash-settled option

---

Definitions:

Disabled Employee

An employee who has a physical or mental impairment that substantially limits one or more major life activities.

Minimum Period

The shortest allowable or required duration for a particular action, event, or condition to take place or remain in effect.

Consolidated Omnibus Budget Reconciliation Act

A federal law providing individuals and their families the option to continue health care coverage under their group health plan in certain instances where coverage would otherwise end.

Social Security Act

A law enacted in 1935 to create a system of transfer payments in which younger, working people support older, retired people.