If a call is in the money on the expiration date then:
A) The strike price must exceed the stock price.
B) The value of the call is equal to the stock value plus the present value of the exercise price.
C) The intrinsic value of the call is positive.
D) The risk-free rate of return has declined since the call was written.
E) The call must be a European rather than an American call.

Question

Quizplus · Accepted Answer

A call option is considered "in the money" when the stock price exceeds the strike price, giving the call intrinsic value. This means the holder can buy the stock at below its current market price.

If a Call Is in the Money on the Expiration