When the Exercise Price of a Call Option Is Higher

question 18

Multiple Choice

When the exercise price of a call option is higher than 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:

Inventory

The raw materials, work-in-progress products, and completely finished goods that are considered to be the portion of a business's assets that is ready or will be ready for sale.

Asynchronization

The lack of synchronization; occurring not simultaneously or at different times or rates.

Financial Planning

Financial planning is the process of creating strategies for managing financial affairs and meeting life goals through the proper management of finances.

Cash Inflows

Money received by a company from its operational activities, investments, or financing.