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:

Progesterone

A hormone produced in the ovaries, placenta, and adrenal glands that plays a key role in the menstrual cycle and maintaining the early stages of pregnancy.

Uterine Lining

refers to the layer of cells lining the uterus, known as the endometrium, which thickens during the menstrual cycle to prepare for potential pregnancy and sheds during menstruation if pregnancy does not occur.