You Know That a Call Will Finish In-The-Money

question 15

Multiple Choice

You know that a call will finish in-the-money.Based on that single piece of information,you also know which one of the following?

• A) The stock price will equal the strike price at expiration.
• B) The risk-free rate is zero percent.
• C) A put on the same underlying asset with the same strike and expiration will finish out-of-the-money.
• D) The strike price will exceed the stock price at expiration.
• E) The price of the call is equal to the price of the put.

---

Definitions:

Visual

Pertaining to the sense of sight, often used in contexts where visual aids, graphics, or imagery enhance understanding or aesthetic appeal.

Appendix

An additional section that houses content connected to the report, excluded from the main text due to its length or potential irrelevance to the entire audience.

Caption

Brief commentary or explanation that accompanies a visual.

Visual's Content

The graphical elements, such as images, videos, and animations, used in communication and media to convey messages.