You Own a Call Option with Time to Expiration

question 10

Multiple Choice

You own a call option with time to expiration. The common stock is selling for $15 and your exercise price is $12, this option:

• A) must be sold to the writer.
• B) is in-the-money.
• C) is out-of-the-money.
• D) must be offset by a put.

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Definitions:

Homeostasis

The process through which living organisms naturally regulate themselves to keep stable while adapting to the best conditions for their survival.

Senescence

The biological process of aging, characterized by a gradual decline in the functional capacity of an organism's cells, tissues, and organs.

Diathesis

An inclination or susceptibility toward the development of mental health conditions, shaped by genetic, biological, or external influences.

Homeostatic Adjustment

The process by which living organisms regulate their internal environment to maintain stable, life-sustaining conditions.