An option can be:
I.in the money
II.out of the money
III.at the money
IV.shallow
A)I, II, III, IV
B)I, II, III only
C)I, II only
D)I only

Question

Quizplus · Accepted Answer

Option I: "in the money" refers to an option that would generate a profit if it was exercised right now. This is a well-known term in the options market and is widely used.

Option II: "out of the money" refers to an option that would not generate a profit if it was exercised right now. This is also a well-known term in the options market and is widely used.

Option III: "at the money" refers to an option where the strike price is the same as the current market price of the underlying asset. This is an important concept in the options market and is widely used.

Option IV: "shallow" is not a commonly used term in the options market, and doesn't have a clear definition. It is not a valid option terminology.

An Option Can Be