The current market price of a share of IBM stock is $76. If a call option on this stock has a strike price of $76, 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.

Question

Quizplus · Accepted Answer

A call option is considered "at the money" when the stock price is equal to the strike price. In this case, since the current market price of IBM stock is $76, which is equal to the strike price of the call option, the option is at the money.

The Current Market Price of a Share of IBM Stock