At expiration of an option contract, which phrase describes the point at which both calls and puts have the same gross profit?
A) at the money
B) in the money
C) out of the money
D) knocked in

Question

Quizplus · Accepted Answer

"At the money" refers to the point at which the strike price of an option is equal to the current market price of the underlying asset. This means that both the call and put options will have the same gross profit at expiration.

At Expiration of an Option Contract, Which Phrase Describes the Point