Which of the following statements is false?
A) An in the money call occurs if the stock price exceeds the exercise price.
B) An out of the money call occurs if the stock price is less than the exercise price.
C) If a call is out of the money, the intrinsic value is zero.
D) If a call is in the money, the intrinsic value is zero.

Question

Quizplus · Accepted Answer

In the money calls have an intrinsic value greater than zero because the current stock price is above the exercise price, allowing the holder to buy the stock for less than its current market value.

Which of the Following Statements Is False