A Call Option on a Stock Is Said to Be

question 13

Multiple Choice

A call option on a stock is said to be at the money if

• A) the exercise price is higher than the stock price.
• B) the exercise price is less than the stock price.
• C) the exercise price is equal to the stock price.
• D) the price of the put is higher than the price of the call.
• E) the price of the call is higher than the price of the put.

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Definitions:

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The market price at which the quantity of goods supplied is equal to the quantity of goods demanded; also known as the market-clearing price.

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