In June 2017,an investor buys call options on Amgen stock with an exercise of price of $65 and expiring in January 2019.If the stock price in June 2018 is $60,then these options are:
i.in-the-money; II)out-of-the-money; III)a LEAPS option
A)I only
B)II only
C)III only
D)II and III only

Question

Quizplus · Accepted Answer

The options are out-of-the-money because the stock price ($60) is below the exercise price ($65). They are also LEAPS options because they have an expiration date more than one year from the purchase date.

In June 2017,an Investor Buys Call Options on Amgen Stock