If a Call Has a Positive Intrinsic Value at Expiration,the

question 30

Multiple Choice

If a call has a positive intrinsic value at expiration,the call is said to be

• A)at the money.
• B)out of the money.
• C)in the money.
• D)funded.
• E)unfunded.

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Definitions:

Operating Income

Income from a company's main business activities, excluding deductions for interest and taxes, showing the profitability from core operations.

ROE

Return On Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses investments to generate earnings growth.

EPS

Earnings per share, a company's net profit divided by the number of its outstanding shares, indicating profitability.

EBIT

Earnings before interest and taxes, a measure of a company's profitability that excludes expense and income from interest and taxes.