If a Call Option Has Zero Intrinsic Value Then

question 96

Multiple Choice

If a call option has zero intrinsic value then:

• A)the call option is in the money.
• B)the call option is out of the money.
• C)the call option has a zero time premium.
• D)a put option with the same strike price also has zero intrinsic value.

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Definitions:

Market Basket A

A selected set of goods and services used to monitor changes in price levels over time, often for the purpose of calculating inflation.

Utility Maximizing

The act of choosing the combination of goods and services that maximizes a consumer's satisfaction or happiness with a given income.

Marginal Utility

The additional satisfaction or utility received by consuming one more unit of a good or service.

Soft Drinks

Non-alcoholic beverages that are usually carbonated and contain various flavorings and sweeteners.