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:

Stockholders' Equity

The leftover value in a company's assets after all obligations are removed.

Intangible Items

Assets that lack physical substance but hold value for a business, such as patents, trademarks, and goodwill.

Physical Items

Tangible objects that can be seen, touched, and measured, encompassing both inventory for sale and assets used in operations.

Assets

Resources owned or controlled by a person or business, which are expected to produce economic value or benefits in the future.