An option with an exercise price equal to the underlying asset's price is
A) worthless.
B) in the money.
C) at the money.
D) out of the money.
E) theoretically impossible.

Question

Quizplus · Accepted Answer

An option with an exercise price equal to the underlying asset's price is considered "at the money," meaning the option's strike price is equal to the market price of the underlying asset.

An Option with an Exercise Price Equal to the Underlying