Choose the One Most Appropriate Statement for Each

question 14

Multiple Choice

Choose the one most appropriate statement for each.
-trypsin

• A)Made in the intestinal lining; removes amino acid residues from the ends of peptides
• B)Glucose, fructose, and galactose are examples
• C)Made in the pancreas; acts on fats
• D)Made by the pancreas and salivary glands; acts on starch
• E)Made by the small intestine; breaks down two-unit sugars to glucose
• F)Made by the pancreas; acts on proteins and polypeptides
• G)Contains cholesterol; helps emulsify fats
• H)Made in the stomach; acts on proteins
• I)Stimulates hydrochloric acid secretion
• J)Regulates passage of food from the stomach to the small intestine

---

Definitions:

Time Value

The portion of an option's price that exceeds its intrinsic value, representing the potential for additional value based on time remaining until expiration.

Out-of-the-money

A term used in options trading to describe an option that would not profit if exercised immediately, i.e., a call option with a strike price above the underlying asset's price or a put option below it.

In-the-money

An option is in-the-money when it has intrinsic value, meaning for a call option, the market price is above the strike price, and for a put option, below the strike price.

Black-Scholes Model

A mathematical model used for pricing European-style options and assessing the options' market value based on factors such as volatility, risk-free rate, and time to expiration.