Q583
Intrinsic value of call option is considered as in money if
A.
stock price > exercise price
AnswerB.
stock price < exercise price
C.
bond price > treasury price
D.
treasury price < bond price
Answer: Option A
Solution
Answer: Option A
Solution:
Intrinsic value of call option is considered as in money if stock price > exercise price. The intrinsic value of both call and put options is the difference between the underlying stock's price and the strike price.