If a Microsoft January 20 Call Option with a Strike

question 56

Multiple Choice

If a Microsoft January 20 call option with a strike price of $20 was selling for $6.62 and the market price of the underlying Microsoft stock was $25.62,the price of the call option would be _______________.

• A)in-the-money
• B)out-of-the-money
• C)fairly priced
• D)not enough information to tell

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Definitions:

Rate Determining

Describes the slowest step in a chemical reaction that determines the overall rate at which the reaction proceeds.

Sigma Complex

An intermediate structure in a chemical reaction where a sigma bond is formed between the electrophile and the nucleophile.

Electrophilic Aromatic Substitution

A reaction where an aromatic ring undergoes substitution by an electrophile, retaining the aromaticity of the compound.

Nitration

A chemical reaction that introduces a nitro group (NO2) into an organic compound, usually involving the substitution of an H atom, often used to synthesize explosives or other nitro compounds.