Asked by Barbara Little on Apr 27, 2024
Verified
The current market price of a share of MSI stock is $24. If a call option on this stock has a strike price of $24, the call
A) is out of the money.
B) is in the money.
C) is at the money.
D) None of the options are correct.
Call Option
A financial contract that gives the buyer the right, but not the obligation, to purchase an asset at a specified price within a certain time frame.
Market Price
The market value at which a service or asset is currently traded.
- Master the ideas surrounding in the money, at the money, and out of the money options.
Verified Answer
HH
Hnuna HualngoApr 30, 2024
Final Answer :
C
Explanation :
The call option has a strike price equal to the current market price of the stock, which means it is neither in nor out of the money, but exactly at the money.
Learning Objectives
- Master the ideas surrounding in the money, at the money, and out of the money options.