An option that would not yield a profit if exercised now is called a(n) _________ option.
A) initiator
B) cash-settled
C) out-of-the-money
D) cash-free
E) activator

Name: An option that would not yield a profit if exercised now is called a(n) _________ option. A) initiator B) cash-settled C) out-of-the-money D) cash-free E) activator
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Question

Quizplus · Accepted Answer

An out-of-the-money option means that the option's strike price is currently not favorable for exercising it and would not yield a profit.

An Option That Would Not Yield a Profit If Exercised