Which of the following statements is FALSE?
A)An in-the-money call occurs if the stock price exceeds the exercise price.
B)An out-of -the money call occurs if the stock price is less than the exercise price.
C)If a call is out of the money,the intrinsic value is zero.
D)If a call is in the money,the intrinsic value is zero.

Question

Quizplus · Accepted Answer

If a call is in the money, the intrinsic value is not zero. It is the amount by which the stock price exceeds the exercise price.

Which of the Following Statements Is FALSE