Use the table for the question(s)below.
Consider the following information on options from the CBOE for Merck:
-How many of the January 2009 call options are in the money?
A)2
B)4
C)1

Question

Use the table for the question(s)below.
Consider the following information on options from the CBOE for Merck: 
-How many of the January 2009 call options are in the money?
A)2 
B)4 
C)1

Quizplus · Accepted Answer

To be in the money, the strike price must be lower than the current stock price. The current stock price is $30.60, and the strike price of the four January 2009 call options that are in the money are as follows: 
- Strike price $15: $30.60 - $15 = $15.60 (in the money)
- Strike price $20: $30.60 - $20 = $10.60 (in the money)
- Strike price $25: $30.60 - $25 = $5.60 (in the money)
- Strike price $30: $30.60 - $30 = $0.60 (in the money)

Therefore, there are four options in the money, and the best choice is B.

Use the Table for the Question(s)below