A Stock Currently Sells for $75 Per Share

question 83

Multiple Choice

A stock currently sells for $75 per share. A call option on the stock with an exercise price of $70 currently sells for $5.50. The call option is

• A) at-the-money.
• B) in-the-money.
• C) out-of-the-money.
• D) at breakeven.
• E) above-the-money.

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Definitions:

Beauty

An aesthetic quality or experience that gives intense pleasure or deep satisfaction to the mind, often derived from sensory perceptions.

Morally

In a manner that is concerned with principles of right and wrong behavior.

Aesthetic

Pertains to the philosophical branch that deals with the nature of beauty, art, and taste, and the creation and appreciation of beauty.

Appreciation

The recognition and enjoyment of the good qualities of someone or something.