Which one of the following stock options is in-the-money?
A) Call with a $35 exercise price and a stock price of $33
B) Put with a $40 exercise price and a stock price of $41
C) Call with a $25 exercise price and a stock price of $25
D) Put with a $30 exercise price and a stock price $29
E) Call with a $20 exercise price and a stock price of $18

Question

Quizplus · Accepted Answer

A put option is in-the-money when its exercise price is higher than the stock price. In this case, the exercise price is $30 and the stock price is $29, making it in-the-money.

Which One of the Following Stock Options Is In-The-Money