Sản phẩm & Rủi roCâu 88 / 398
A call option with a strike price of $50 is held while the underlying stock trades at $57. This call is:
a.Out-of-the-money by $7
b.In-the-money by $7
c.At-the-money
d.Worthless because it is past expiration
Giải thích
A call is in-the-money when the stock price is above the strike price. Here the stock at $57 exceeds the $50 strike by $7, so the call has $7 of intrinsic value. A call is out-of-the-money when the stock is below the strike and at-the-money when the two are equal.
Luyện miễn phí toàn bộ 398 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- An investor who buys a put option is generally:
- The writer (seller) of a call option is obligated to:
- An investor writes (sells) a put option. This investor:
- A put option with a strike price of $40 is held while the underlying stock trades at $45. This put is:
- When the market price of the underlying stock exactly equals the strike price, both a call and a put on that stock are said to be:
- An option premium is composed of:
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