You own a July $15 call on ABC stock. Assume today is April 20 and the call has zero intrinsic value. Which one of the following best describes this option?

Name: You own a July $15 call on ABC stock. Assume today is April 20 and the call has zero intrinsic value. Which one of the following best describes this option?
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Question

Quizplus · Accepted Answer

The option is out-of-the-money because it has zero intrinsic value. It has the potential to become in-the-money before the expiration date but currently, it is not worth anything.

You Own a July $15 Call on ABC Stock