What Is the Meaning of "At-The-Money Options

question 96

Multiple Choice

What is the meaning of "at-the-money options"?

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

---

Definitions:

Negotiable Document

A document guaranteeing the transfer of certain rights which can be transferred from one party to another through endorsement or delivery.

Nonnegotiable Document

A legal or official document whose terms and conditions cannot be altered or bargained over.

Good-Faith Purchaser

A buyer who purchases property without knowledge of any claims, liens, or encumbrances on the property.

Good Title

Legal terminology indicating that a property is owned free and clear of any liens, encumbrances, or legal questions concerning the ownership.