A Call Option Is Said to Be in the Money

question 13

Multiple Choice

A call option is said to be in the money if

• A)it is written on a Treasury bill or other money-market asset.
• B)it has increased in price since it was first written.
• C)the price of the underlying asset is currently greater than the strike price.
• D)the price of the underlying asset is currently greater than the strike price plus the option premium.

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Definitions:

IQ Tests

Standardized tests designed to measure human intelligence and cognitive abilities.

Standard Deviation

A statistical measure of the dispersion or variability within a data set, indicating how spread out the values are.

Percentile

A statistical value that indicates the relative standing of a data point within a dataset, often used to compare individual scores to a broader population.

Mean

The arithmetic average of a set of numbers, calculated by adding all the numbers together and then dividing by the count of those numbers.