When the Exercise Price of an Option Is Equal to the Current

question 89

Multiple Choice

When the exercise price of an option is equal to the current price of the stock, the option is said to be ________.

• A) at-the-money
• B) in-the-money
• C) out-of-the-money
• D) none of the above

---

Definitions:

P-values

In statistics, a measure that helps determine the significance of results from a hypothesis test, indicating the probability of observing the obtained results assuming the null hypothesis is true.

P-value

A statistical measure that helps in determining the significance of the results obtained from a hypothesis test, indicating the probability of observing the results by chance.

Statistical Significance

A result is said to be statistically significant if the computed p-value is less than some prescribed number, usually 0.05.

Null Hypothesis

In statistical hypothesis testing, a statement suggesting that there is no significant difference or effect and that any observed difference is due to sampling or experimental error.