A Call Option Whose Exercise Price Exceeds the Spot Price

question 40

Multiple Choice

A call option whose exercise price exceeds the spot price is said to be:

• A) in-the-money.
• B) at-the-money
• C) out-of-the-money.
• D) over-the-spot.

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Definitions:

Net Cash

Net Cash refers to the amount of cash available after accounting for cash inflows and outflows.

Operating Activities

Activities that relate to the company's primary operations, such as sales, delivery of services, and production.

Net Cash

The net cash remaining following the calculation of cash incomes and expenditures.

Operating Activities

Activities and transactions that relate to the primary operations of the company, including revenue-generating activities and other operations-related cash flows.