When the Exercise Price of a Call Option Is Lower

question 43

Multiple Choice

When the exercise price of a call option is lower 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:

United States

A country located in North America, consisting of 50 states, a federal district, and several territories.

Collective Bargaining

The process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, and other aspects of workers' compensation and rights.

Goal

A desired result or outcome that an individual or organization aims to achieve.