Which One of the Following Terms Is Defined as an Option

question 11

Multiple Choice

Which one of the following terms is defined as an option that would have a positive payoff if exercised now?

• A) in-the-money option
• B) out-of-the-money option
• C) straddle
• D) crossed option
• E) cash-settled

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Definitions:

Cited

Referenced or mentioned, often in the context of providing evidence or legal support in written documents.

9th Cir. 1980

A reference to a specific set of legal decisions or precedent established by the Ninth Circuit Court of Appeals in the year 1980.

Circuit

In a legal context, a geographical area of jurisdiction of federal courts, or in electrical engineering, a closed path through which an electric current flows or may flow.

Decided

Resolved or determined, often in the context of a judgment, verdict, or conclusion reached by a court or deliberative body.