A Call Option Whose Exercise Price Exceeds the Spot Price

question 40

Multiple Choice

A call option whose exercise price exceeds the spot price is said to be:

• A) in-the-money.
• B) at-the-money
• C) out-of-the-money.
• D) over-the-spot.

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Definitions:

Norm-Referenced Appraisal

An evaluation method comparing an individual's performance or characteristics to the norm of a larger group.

Forced Distribution

A performance evaluation method where employees are ranked in accordance with a predetermined distribution curve, often leading to a fixed number of employees in categories like high, medium, and low performers.

Salespeople Ranking

The process of evaluating and ordering sales staff according to their sales performance or achievements.

Norm-Referenced Appraisals

Employee evaluation method comparing an individual's performance against that of their peers, rather than on a set of absolute criteria.