An Option with an Exercise Price Equal to the Underlying

question 99

Multiple Choice

An option with an exercise price equal to the underlying asset's price is

• A) worthless.
• B) in the money.
• C) at the money.
• D) out of the money.
• E) theoretically impossible.

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Definitions:

Normal Fault

A type of fault where the hanging wall slides downward relative to the footwall due to tensional forces.

Strike And Dip

Geological terms used to describe the orientation of rock layers, with strike indicating the direction of the layer's horizontal angle and dip indicating its vertical angle.

Horst And Graben

Geological features formed by the movement of the earth's crust, with a horst being a raised fault block and a graben being a lowered block, creating distinctive landscapes.

Footwall

The wall rock beneath an inclined fault.