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 case of Call option, when the market price (spot price) is greater than Strike (exercise) price, it is said to be in-the-money

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