Q627
Situation in financial options in which strike price is less than current price of stock is classified as
A.
in-the-money
AnswerB.
out-of-the-money
C.
out-of-the-portfolio
D.
in-the-portfolio
Answer: Option A
Solution
Answer: Option A
Solution:
Situation in financial options in which strike price is less than current price of stock is classified as in-the-money. A call option is in the money (ITM) if the market price is above the strike price. A put option is in the money if the market price is below the strike price.