What Is the Meaning of an "In the Money Call

question 23

Multiple Choice

What is the meaning of an "in the money call option"?

• A)A call option is in-the-money when the market price means that it will expire un-exercised.
• B)A call option is in-the-money if the market price of the share equals the exercise price.
• C)A call option is in-the-money if the market price of the share is less than the exercise price.
• D)A call option is in-the-money if the market price of the share exceeds the exercise price.

---

Definitions:

Peak Selling Period

The time frame during which sales for a particular product or service reach their highest levels, often related to seasonal demand or specific marketing campaigns.

Credit Risk

The possibility of a loss resulting from a borrower's failure to repay a loan or meet contractual obligations.

Accounting Standards

Are the rules and guidelines that companies must follow when reporting financial data, allowing for consistency, transparency, and comparability.

Financial Statement Forecasts

Projections or estimates of a company's future financial performance, including income statements, balance sheets, and cash flows.