Questions are based on the following options data for XYZ Corporation:

-Which of the following options is furthest in the money?
A) November 30 Call
B) November 35 Call.
C) December 35Call
D) November 40 Call

Question

Questions  are based on the following options data for XYZ Corporation:

-Which of the following options is furthest in the money?
A) November 30 Call 
B) November 35 Call. 
C) December 35Call 
D) November 40 Call

Quizplus · Accepted Answer

An option is considered "in the money" when the strike price is below the current market price for a call option. Without knowing the current market price, we can infer that a call option with the lowest strike price (November 30 Call) is the most likely to be furthest in the money, as it would have the greatest difference between the market price and the strike price if the market price is above these strike prices.

Questions Are Based on the Following Options Data for XYZ