What is the meaning of "in the money options"?
A)An option is in-the-money when the market price means that it will expire un-exercised.
B)An option is in-the-money if the market price of the share equals the exercise price.
C)An option is in-the-money if the market price of the share is less than the exercise price.
D)An option is in-the-money if the market price of the share exceeds the exercise price.

Question

Quizplus · Accepted Answer

In-the-money options are options where the market price of the underlying asset exceeds the exercise or strike price. In other words, if a call option's strike price is $50 and the market price of the underlying asset is $60, the call option is said to be in-the-money. The option holder would have the right to buy the asset at the lower exercise price and sell it in the market at the higher market price, which would result in a profit.

What Is the Meaning of "In the Money Options