Which One of the Following Terms Is Defined as an Option

question 109

Multiple Choice

Which one of the following terms is defined as an option with a strike price that is equal to the underlying price?

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

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Definitions:

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of consumers to price changes.

Gasoline Consumption

The total volume of gasoline used by vehicles within a country or region, often measured in gallons or liters per capita.

Perfectly Inelastic

A situation in economics where the quantity demanded or supplied does not change regardless of changes in price.

Elasticity

A measure in economics that denotes the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.