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

question 106

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)trading at par.
• E)trading below par.

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for quick action in emergencies; "fight or flight" response.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for rest and digestion, counterbalancing the sympathetic nervous system's fight or flight response.

Behavioral Observation

A method used in psychological research and practice where the actions or behaviors of subjects are watched and recorded.

Physiological Measurement

The process of assessing the biological functions and processes of the human or animal body, often for the purpose of diagnosing diseases or assessing health.