Which of the following is an example of a call option that is "in the money"?
A)option to sell at $11, stock is worth $12
B)option to buy at $13, stock is worth $12
C)option to sell at $13, stock is worth $12
D)option to buy at $11, stock is worth $12

Question

Quizplus · Accepted Answer

An option is "in the money" when the option to buy the stock is lower than the current stock price. In this scenario, option D allows the holder to buy the stock at $11, which is lower than the current stock price of $12, making it "in the money".

Which of the Following Is an Example of a Call