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:

Potential Market

The entire market universe that could potentially buy a product or service, considering all possible customers who fall within a segment.

Prototype

An early sample, model, or release of a product built to test a concept or process, serving as a thing to be replicated or learned from.