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:

Golf Balls

Small, dimpled balls designed and constructed for use in the game of golf, optimized to fly far and straight when struck by golf clubs.

Pro Shop

A specialty retail store located within a sports venue, typically selling equipment and merchandise related to the sport or activity hosted at the venue.

Expected Value

The long-term average or mean value of a random variable over many repetitions of an experiment.

Good Batteries

Indicate batteries that are fully functional, holding charge as expected and not defective.