When the Exercise Price of an Option Is Equal to the Current

question 89

Multiple Choice

When the exercise price of an option is equal to the current price of the stock, the option is said to be ________.

• A) at-the-money
• B) in-the-money
• C) out-of-the-money
• D) none of the above

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Definitions:

Hostile Aggression

Aggressive behavior that is performed with the intent to cause harm or injury to another.

Unpleasant Events

Occurrences or situations that evoke negative emotional responses, such as discomfort, fear, or sadness.

Polygraph Test

A lie detector test that measures physiological responses, such as heart rate and blood pressure, to determine truthfulness.

Polygraph Test

A diagnostic tool used to assess the veracity of an individual's statements by measuring physiological responses to questions.