📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    When the Spot price of a Call Option is greater than the

    Strike Price of an Option, The Option is said to be in:
    A In-the Money Option Correct Answer Incorrect Answer
    B At-The money Option Correct Answer Incorrect Answer
    C Out of the money Option Correct Answer Incorrect Answer
    D Bermuda Option Correct Answer Incorrect Answer
    E American Option Correct Answer Incorrect Answer

    Solution

    In the case of a call option when the spot price (market price at present) is more than the strike (exercise price) then the option is said to be in the money and will be exercised by the option holder.

    Practice Next
    More Money and Capital Budgeting Questions

    Relevant for Exams:

    ask-question