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You Know That a Call Will Finish in the Money

Question 11

Multiple Choice

You know that a call will finish in the money. Based on that single piece of information, you also know which one of the following?


A) The stock price will equal the strike price at expiration.
B) The risk-free rate is zero.
C) A put on the same underlying asset with the same strike and expiration will finish out of the money.
D) The strike price will exceed the stock price at expiration.
E) The price of the call is equal to the price of the put.

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