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:

Annual Rates

Refers to the interest or growth rate over a period of one year.

Annual Rates

Refers to rates that are applied over the course of a year, commonly found in financial contexts like savings or loan interest rates.

Monthly Rates

Rates calculated or applied on a monthly basis, commonly found in subscriptions, rentals, or loans.

Annual Rates

The interest rate for a period of one year, often used in contexts such as loans or investments.