When a Call Option's Strike Price Is Less Than the Current

question 56

Multiple Choice

When a call option's strike price is less than the current price of the underlying asset,the call is said to be

• A) at the money
• B) in the money
• C) out of the money
• D) worthless

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Definitions:

Indices

Statistical measures that track changes in a representative group of individual data points, often used to assess economic and financial performance.

Price Support

A government policy or mechanism that sets a minimum price for a product or commodity to help stabilize the market and ensure income for producers.

Taxpayers

Individuals or entities that are obligated to pay taxes to a government authority, based on earnings, property ownership, or consumption.

Farmers

Individuals or entities engaged in the practice of agricultural production, cultivating plants and livestock for food, fiber, and other products.