An Option with an Exercise Price Equal to the Underlying

question 99

Multiple Choice

An option with an exercise price equal to the underlying asset's price is

• A) worthless.
• B) in the money.
• C) at the money.
• D) out of the money.
• E) theoretically impossible.

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Definitions:

Common Law

A legal system based on precedents and judicial decisions rather than codified statutes.

Damages

Financial compensation awarded by a court to indemnify losses suffered by a plaintiff as a result of another's actions.

Injured Party

An individual or entity that has suffered harm or injury, either physically, financially, or reputationally, often leading to a claim for compensation or relief.

Charter Action

Legal proceedings initiated to seek redress or enforcement of rights protected under a charter of rights, such as the Canadian Charter of Rights and Freedoms.