If a Microsoft January 20 Call Option with a Strike

question 119

Multiple Choice

If a Microsoft January 20 call option with a strike price of $20 was selling for $2.00 and the market price of the underlying Microsoft stock was $25.62, the call option would be _______________.

• A) in-the-money
• B) out-of-the-money
• C) fairly priced
• D) flat priced

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Definitions:

Connective(s)

In logic, connectives are symbols that connect two statements or propositions to form a more complex proposition, such as "and", "or", "if...then", and "if and only if".

Symbolic Form

The representation of logical propositions using symbols to simplify notation and facilitate logical analysis.

Rotating

The act of turning around a central point or axis.

Natural Explanation

An explanation based on natural causes or phenomena, typically excluding supernatural or artificial factors.