Which One of the Following Terms Is Defined as an Option

question 11

Multiple Choice

Which one of the following terms is defined as an option that would have a positive payoff if exercised now?

• A) in-the-money option
• B) out-of-the-money option
• C) straddle
• D) crossed option
• E) cash-settled

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Definitions:

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all unrealized gains and losses.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and stockholders' equity at a specific point in time, providing insights into its financial health and stability.

Statement of Cash Flows

A document that consolidates data about cash receipts from operational and investment activities, and cash outflows for business and investment spending, all recorded during a given period.

Statement of Stockholders' Equity

A financial document that outlines the changes in the value of a company's equity over a specific period due to earnings, dividends, and other equity adjustments.