An Option That Would Not Yield a Profit If Exercised

question 66

Multiple Choice

An option that would not yield a profit if exercised now is called a(n) _________ option.

• A) initiator
• B) cash-settled
• C) out-of-the-money
• D) cash-free
• E) activator

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Definitions:

Testosterone

A steroid hormone primarily produced in males, associated with the development of male physical characteristics and reproductive functions.

Diabetes

A chronic condition that affects how the body processes blood sugar (glucose).

Sandwich

A food item consisting of one or more types of food, such as meat, cheese, or vegetables, placed between slices of bread.

Atherosclerosis

Condition in which arteries stiffen, and the walls accumulate cholesterol and fat plaques, which reduce blood flow; a cause of heart disease.