When the Exercise Price of a Call Option Is Lower

question 32

Multiple Choice

When the exercise price of a call option is lower than the current share price, 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:

Legal Ethics

The principles and codes of conduct that govern the behavior of legal professionals.

Disciplinary Proceeding

A formal process where professional conduct is reviewed, and disciplinary actions may be taken for violations.

Malpractice Lawsuit

A legal action taken against a professional, such as a doctor or lawyer, for negligence or incompetence that results in harm to a client or patient.

Duty of Competence

A professional obligation requiring individuals to have the necessary knowledge and skill to perform tasks effectively.