When the Existing Spot Rate Exceeds the Exercise Price, a Call

question 85

Multiple Choice

When the existing spot rate exceeds the exercise price, a call option is ____, and a put option is ____.

• A) out of the money; in the money
• B) out of the money; out of the money
• C) in the money; in the money
• D) in the money; out of the money

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Definitions:

Personal Conversation

A private discussion between individuals about topics of personal interest or concern, often involving sharing of confidential information.

Positive Communication

Communication that is constructive, encouraging, and aimed at building understanding and trust, while minimizing conflict.

Instructions

Detailed information on how to do something or use something.

Interrupting

The act of stopping or hindering a process or conversation, often temporarily.