A Call Option Has an Intrinsic Value of Zero If

question 2

Multiple Choice

A call option has an intrinsic value of zero if the option is

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

---

Definitions:

Supplemental Medical Coverage

Additional health insurance that covers costs not covered by a primary insurance plan, including copayments, deductibles, and non-covered services.

Market Pricing

The process of determining the value of a job in the external job market by comparing it with similar jobs in other organizations.

Equity

Fair treatment and distribution of resources, or in finance, the value of an ownership interest in property, including shareholders' equity in a corporation.

Efficiency

The ability to achieve maximum productivity with minimum wasted effort or expense.