With a call option that is described as in the money:
A) the market price of the stock is below the strike price.
B) the market price of the stock equals the strike price.
C) the market price of the stock is above the strike price.
D) the option has been exercised.

Question

Quizplus · Accepted Answer

An "in the money" call option is one where the market price of the underlying stock is above the strike price, making the option profitable if exercised. If the market price equals or is below the strike price, the option is considered "out of the money". If the option has been exercised, it is no longer an option but rather an executed trade.

With a Call Option That Is Described as in the Money