If a Call Has a Positive Intrinsic Value at Expiration

question 1

Multiple Choice

If a call has a positive intrinsic value at expiration the call is said to be:

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

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Definitions:

Cash

A company's most liquid asset, representing currency or assets that can be immediately converted into currency.

Sales Tax Payable

A liability account that represents the sales tax collected from customers by a selling entity and owed to the tax authority.

Cash

Money in the form of currency, which includes bills, coins, and money in bank accounts that is available for immediate use.

Current Liabilities

Short-term financial obligations that are due within one year or within a normal operational cycle.