In Each Group

question 66

Multiple Choice

In each group. select the sentence with the correct relative pronoun and punctuation.

• A) My grandmother who lives in Arkansas, makes beautiful quilts.
• B) My grandmother, who lives in Arkansas, makes beautiful quilts.
• C) My grandmother that lives in Arkansas makes beautiful quilts.

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Definitions:

Put Option

The right to sell an asset at a specified exercise price on or before a specified expiration date.

At The Money

The option’s exercise price and the price of the underlying asset are equal.

Out Of The Money

Out of the money describes an option where exercise would result in a negative cash flow. Out-of-the-money options are therefore never exercised.

In The Money

Describes an option whose exercise would produce a positive cash flow. Out of the money describes an option where exercise would result in a negative cash flow.