The intrinsic value of call option is considered as in the money if ___________?
Correct answer: A. stock price > exercise price
- A. stock price > exercise price
- B. stock price treasury price
- C. treasury price < bond price
- D. None of These
Explanation
A call option is in the money when the market price of the underlying stock exceeds the exercise price, because exercising allows the holder to buy below market value. Its intrinsic value is then stock price minus exercise price.
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