If the stock price is greater than the strike price, a call immediately exercised is said to be:
A) in-the-money.
B) at-the-money.
C) out-of-the-money.
D) selling at a discount.
E) a standardized contract.

Question

Quizplus · Accepted Answer

If the stock price is greater than the strike price, a call option is in-the-money, meaning it has intrinsic value and can be exercised for a profit.

If the Stock Price Is Greater Than the Strike Price