Which One of the Following Stock Options Is Out-Of-The-Money

question 16

Multiple Choice

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

• A) Call with a $35 exercise price and a stock price of $36
• B) Put with a $40 exercise price and a stock price of $38
• 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 $19

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Definitions:

Voltage Drop

The measurement of voltage lost through wiring, components, and connections due to electrical resistance.

Hydrometer

An instrument used to measure the density (specific gravity) of liquids.

Specific Gravity

A measure of the density of a substance compared to the density of water, indicating how heavy or light a substance is relative to water.

Battery Drain

The depletion of a battery's charge, often occurring when electrical devices consume power faster than it can be replenished or when the vehicle is not in use.