An option whose exercise price is equal to the spot rate is said to be:

A) in-the-money.
B) at-the-money.
C) out-of-the-money.
D) on-the-spot.

Answer: B

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Based on the data in Exhibit 1 (Ch.11), the bond portfolio strategy used by the fired manager can best be described as:

A. pure bond index matching. B. enhanced indexing/matching risk factors. C. Active management/larger risk factor mismatches.

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In the discriminant analysis model, the coefficients, or weights (b), are estimated so that the groups differ as much as possible on the values of the discriminant function

This occurs when the ratio of between-group sum of squares to within-group sum of squares for the discriminant scores is at a maximum. Indicate whether the statement is true or false

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