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:

Indorsed in Blank

Pertains to a signature on a financial instrument, such as a check, without specifying a payee, allowing any holder to cash or transfer it.

Negotiation

The process by which two or more parties attempt to settle their differences or reach an agreement through discussion and compromise.

Accidental

An unexpected and unintentional event that causes damage or injury.

Indorser

An alternative spelling of "endorser," referring to a person who signs a document (often a negotiable instrument) to endorse it, thereby assuming responsibility under certain conditions.