A Call Option Is Said to Be in the Money

question 13

Multiple Choice

A call option is said to be in the money if

• A)it is written on a Treasury bill or other money-market asset.
• B)it has increased in price since it was first written.
• C)the price of the underlying asset is currently greater than the strike price.
• D)the price of the underlying asset is currently greater than the strike price plus the option premium.

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Definitions:

Minor-Points Close

A close in which the salesperson asks the prospect to make a low-risk decision on a minor element of a product.

Balance-Sheet Close

A sales technique where the salesperson presents a summary of the costs and benefits of a product or service to the customer, similar to a balance sheet in finance.

Unethical Close

A closing technique in sales that relies on manipulative or deceitful practices to secure a sale, often disregarding the best interest of the customer.