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.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Equity Securities questions
- A put option is described as 'in the money' when:
- A customer who sells a put option is exposed to which primary risk?
- What is the maximum loss for the buyer of an option contract?
- A 75 strike put with the stock at $80 is:
- A call option with a $25 strike is at the money when the stock is at:
- A customer who sells (writes) a call option is said to have a:
- A customer is long 1 ABC 40 put. What does this give the customer the right to do?
- A 40 strike call option on stock trading at $38 is considered: