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Basic Question 14 of 18
An in-the-money call option is one ______
II. that has positive value if exercised.
III. that has an exercise price above the current market price of the underlying security.
I. that has an exercise price below the current market price of the underlying security.
II. that has positive value if exercised.
III. that has an exercise price above the current market price of the underlying security.
User Contributed Comments 2
| User | Comment |
|---|---|
| sshetty2 | We don't factor in the premium? |
| mcbreatz | You would still exercise the option if it is in the money even if it was just to offset part of the premium you paid. |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
determine the value at expiration and profit from a long or a short position in a call or put option
contrast forward commitments with contingent claims
CFA® 2024 Level I Curriculum, Volume 5, Module 2.