SIE practice questionmediumIn/At/Out of the money
Which of the following is true for a call option at the money?
- AStock price is below strike price
- BStock price equals strike price✓ Correct answer
- CStock price is above strike price
- DPremium equals intrinsic value
Explanation
Why B — Stock price equals strike price
Calls are at the money when market equals strike. B is out of the money, C is in the money, D may or may not be true.
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