Which One of the Following Stock Options Is In-The-Money

question 98

Multiple Choice

Which one of the following stock options is in-the-money?

• A) Call with a $35 exercise price and a stock price of $33
• B) Put with a $40 exercise price and a stock price of $41
• C) Call with a $25 exercise price and a stock price of $25
• D) Put with a $30 exercise price and a stock price $29
• E) Call with a $20 exercise price and a stock price of $18

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Definitions:

Bequests

The act of giving assets, such as money, property, or personal belongings, to others through a will.

Tax Efficacy

The effectiveness of a tax system or policy in achieving its intended financial or economic objectives while minimizing negative impacts on taxpayers.

Strategic Philanthropy

A form of philanthropy where donors seek to achieve the greatest possible impact through their charitable activities by using data, research, and careful planning to address systemic issues.

Charitable Gift Annuity

A financial arrangement in which an individual donates assets to a charity in exchange for a fixed income stream for a specified term or for life.