With a call option that is described as in the money:
A. the option has been exercised.
B. the market price of the stock is below the strike price.
C. the market price of the stock is above the strike price.
D. the market price of the stock equals the strike price.
Answer: C
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Refer to the above figure. Which variable is autonomous with respect to real GDP?
A) real consumption spending B) the sum of real consumption and real saving C) real saving D) real investment spending
The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. If there is a 20 percent chance that the home could be completely destroyed, would this homeowner buy insurance?
A) No, because the homeowner is not risk averse. B) Yes, at any price because the homeowner is risk averse. C) Yes, but only if it costs less than $10,000. D) Yes, but only if it costs less than $20,000.
Refer to Figure 2-5. If the economy is currently producing at point W, what is the opportunity cost of moving to point Y?
A) 2 million tons of paper B) 2 million tons of steel C) 14 million tons of steel D) 9 million tons of paper
Differentiate between the following three political regimes—monarchy, dictatorship, and representative democracy
What will be an ideal response?