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

Question

Quizplus · Accepted Answer

At-the-money options occur when the market price of the underlying asset is equal to the exercise price of the option. This means that there is no intrinsic value in the option, and its value is purely derived from the volatility and time remaining until expiration.

What Is the Meaning of "At-The-Money Options