A call option is said to be "out of the money" if the

Question options:

	A.strike price exceeds the stock price.
	B. stock price equals the strike price.
	C. strike price equals the exercise price.
	D. stock price exceeds the strike price.

The opposite side of a derivatives transaction (for example a forward contract) is referred to as the

Question options:

	A. counterparty.
	B. hedger.
	C. derivator.
	D. speculator.

Within futures contracts, the concept of marking to market involves

Question options:

	A. changing the futures price to the spot price each day.
	B. updating the futures price after the market closes each day.
	C. engaging in arbitrage so as to reduce the risk involved with futures contracts.
	D. daily settlement in which the exchange transfers funds depending on changes in the price of the contract.