A call option on a stock is said to be in the money if
A) the exercise price is higher than the stock price.
B) the exercise price is less than the stock price.
C) the exercise price is equal to the stock price.
D) the price of the put is higher than the price of the call.
E) the price of the call is higher than the price of the put.

Question

Quizplus · Accepted Answer

A call option is considered in the money when the stock price is above the exercise price, allowing the option holder to buy the stock at a price lower than the current market price.

A Call Option on a Stock Is Said to Be