Which of the Following Is an Example of a Call

question 61

Multiple Choice

Which of the following is an example of a call option that is "out of the money"?

• A)option to sell at $11, stock is worth $12
• B)option to buy at $13, stock is worth $12
• C)option to buy at $12, stock is worth $12
• D)option to sell at $13, stock is worth $12

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Definitions:

Roth Retirement Plan

A type of retirement savings account allowing the saver to pay taxes on the money going into the account, with subsequent withdrawals being tax-free.

Taxable

Subject to taxation by government authorities.

Moral Hazard

Moral hazard refers to situations where one party engages in riskier behavior because they know another party bears the risk.

Collision Car Insurance

A type of auto insurance that covers damage to the policyholder's car resulting from a collision with another vehicle or object.