A Call Option with a Strike Price Less Than the Current

question 31

Multiple Choice

A call option with a strike price less than the current spot price is said to be _____.

• A) non-exercisable
• B) in-the-money
• C) out-of-the-money
• D) at-the-money

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Definitions:

Office Space

Premises rented or leased by businesses to conduct their operations, often equipped with necessary facilities and services.

Minor Requirement

A smaller or less significant obligation or condition that must be fulfilled, often in addition to major requirements.

De Facto Corporation

A corporation defectively incorporated in good faith that exists in fact though not in law.

Incorporation

The process of legally declaring a corporate entity as separate from its owners, providing it with its own rights, privileges, and liabilities distinct from those of its members.