What term is used for an option with a positive intrinsic value?
A)put option
B)over the counter
C)in the money
D)call option

Question

Quizplus · Accepted Answer

An option with a positive intrinsic value is said to be "in the money." This means that if the option were to expire immediately, the option holder would make a profit. A call option is the type of option that gives the holder the right to buy an underlying asset at a predetermined price, and a put option is the opposite, giving the holder the right to sell an underlying asset. "Over the counter" refers to trading that is done directly between two parties outside of an organized exchange. Therefore, the best choice is C.

What Term Is Used for an Option with a Positive