If a call option has a positive intrinsic value at expiration the call is said to be:
A)funded.
B)unfunded.
C)at the money.
D)in the money.
E)out of the money.

Question

Quizplus · Accepted Answer

A call option is said to be "in the money" when its intrinsic value is positive at expiration. This means that the strike price of the option is below the current market price of the underlying asset (for a call option), and the holder of the option has the right to buy the asset at a lower price than its current market value.

If a Call Option Has a Positive Intrinsic Value at Expiration