If a Call Option Has a Positive Intrinsic Value at Expiration

question 66

Multiple Choice

If a call option has a positive intrinsic value at expiration the call is said to be:

• A)funded.
• B)unfunded.
• C)at the money.
• D)in the money.
• E)out of the money.

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Definitions:

Compounded Quarterly

Interest calculation on the initial amount plus any accumulated interest four times a year.

Equal Payments

Regularly scheduled payments that are the same amount over a given period, commonly used in loans and mortgages.

Combined Equivalent

This term suggests a concept related to combining various elements to yield an equivalent value or function, but without specific context, its exact definition could vary widely.

Scheduled Payments

Predetermined payments made at regular intervals, such as monthly or annually, often related to a loan or mortgage.