The current market price of a share ofONB stock is $195. If a call option on this stock has a strike price of $195, 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. Since the current market price ($195) equals the strike price ($195), the call option is at the money.

The Current Market Price of a Share OfONB Stock Is