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Which of the Following Best Describes the Term "In the Money

Question 5

Multiple Choice

Which of the following best describes the term "in the money"?


A) The average market price of an ordinary share exceeds the price of an option or warrant.
B) The exercise price of options or warrants is higher than the average market price of an ordinary share.
C) The average market price of an ordinary share reflects the required dividend payments in arrears to preferred shareholders.
D) The entity's incremental ordinary shares calculated when determining diluted EPS are assumed to be issued for no consideration.
E) The number of outstanding ordinary shares is lower for purposes of calculating diluted EPS is than it is for calculating basic EPS

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