With a Call Option That Is Described as in the Money

question 37

Multiple Choice

With a call option that is described as in the money:

• A) the market price of the stock is below the strike price.
• B) the market price of the stock equals the strike price.
• C) the market price of the stock is above the strike price.
• D) the option has been exercised.

---

Definitions:

Species

A group of living organisms consisting of similar individuals capable of exchanging genes or interbreeding to produce fertile offspring.

Arachnida

A class of joint-legged invertebrate animals in the arthropod phylum, including spiders, scorpions, ticks, and mites.

Insecta

The class of arthropods that includes insects, characterized by a three-part body, compound eyes, antennae, and, typically, two pairs of wings.

Exoskeleton

An external skeleton, such as the shell of mollusks or outer covering of arthropods; provides protection and sites of attachment for muscles. Compare with endoskeleton.