An Option That Would Not Yield a Positive Payoff If

question 66

Multiple Choice

An option that would not yield a positive payoff if exercised today is referred to by which one of the following terms?

• A) hollow option
• B) zero option
• C) in-the-cellar option
• D) out-of-the-money option
• E) strike-out

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Definitions:

Column Proportion

The ratio of a particular value's frequency to the total number of data points in its column within a table.

Somewhat Proficient

Describes a level of skill or competence that is moderate or satisfactory but not complete or expert.

Probability Distribution

A mathematical function that provides the probabilities of occurrence of different possible outcomes in an experiment.

Random Variable

An element whose values represent numerical results from a stochastic occurrence.