A Call Option Whose Exercise Price Is Less Than the Spot

question 55

Multiple Choice

A call option whose exercise price is less than the spot rate is said to be

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

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Definitions:

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A theory of learning that posits people can learn new behaviors and norms through observing, imitating, and being reinforced by others.

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A cognitive-behavioral therapy technique teaching individuals to cope with stress by preparing them in advance to handle stressful situations effectively.

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