The Current Market Price of a Share of IBM Stock

question 86

Multiple Choice

The current market price of a share of IBM stock is $195. If a call option on this stock has a strike price of $195, the call

• A) is out of the money.
• B) is in the money.
• C) is at the money.
• D) None of the options are correct.

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Definitions:

Balanced Trade

A situation in which the value of a country's exports equals the value of its imports over a certain period.

Net Exports

The value of a country's exports minus its imports; a positive number indicates a trade surplus, while a negative one indicates a trade deficit.

Trade Surplus

A situation in which a country's exports exceed its imports.

Exports

Goods or services sent from one country to another for sale or trade.