Which of the following options are at the money?
A) Price of the underlying = $18; Exercise price of the put option = $22
B) Price of the underlying = $45; Exercise price of the put option = $38
C) Price of the underlying = $20; Exercise price of the call option = $21
D) Price of the underlying = $33; Exercise price of the call option = $33
E) Price of the underlying = $21; Exercise price of the call option = $20

Question

Quizplus · Accepted Answer

An option is considered "at the money" when the price of the underlying asset is equal to the exercise price of the option. In option D, the price of the underlying ($33) is equal to the exercise price of the call option ($33), making it the only "at the money" option among the choices.

Which of the Following Options Are at the Money