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:

Carcinogens

Substances that promote the formation of cancer in living tissue.

Lupus

A chronic autoimmune disease where the body's immune system becomes hyperactive and attacks normal, healthy tissue, leading to inflammation, pain, and damage in various parts of the body.

Multiple Sclerosis

A long-lasting autoimmune disorder that impacts the central nervous system, resulting in a range of physical and cognitive impairments.

Arthritis

A condition characterized by inflammation of the joints, causing pain and stiffness that typically worsens with age.