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:

Inferiority Feelings

Emotions or sensations of being lesser or inadequate compared to others, which can impact self-esteem and motivate compensatory actions or overcompensations.

Genetically Determined

Something that is genetically determined is influenced or controlled by genes and inherited from one's parents.

Overbearing Parents

Parents who exert excessive control over their children's lives, often leading to a lack of independence and self-efficacy in the child.

Compensation

A defense mechanism where individuals overachieve in one area to make up for deficiencies in another.