When the Exercise Price Exceeds the Market Price of the Underlying

question 16

Multiple Choice

When the exercise price exceeds the market price of the underlying security, the

• A)call option is in the money.
• B)put option is in the money.
• C)call option is at the money.
• D)put option is out of the money.

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Definitions:

Normal

Pertaining to what is considered common, usual, or conforming to the standard or the average; often used in statistical or medical contexts to define the typical.

DSM-5 Disorder

A mental disorder as classified in the fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a tool for mental health diagnosis.

Serial Sexual Murderers

Individuals who commit a series of murders with significant sexual elements involved in the crimes, typically involving a pattern and a period of time between murders.