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?

Question

Quizplus · Accepted Answer

Since the call option has zero intrinsic value, it means that the current price of the ABC stock is below the strike price of the option ($15). Therefore, the option is out-of-the-money, and has the potential for value if the stock price increases before the July expiration date.

You Own a July $15 Call on ABC Stock