An option is ______________ if its exercise price is equal to the current market price of the underlying asset.

Question

Quizplus · Accepted Answer

An option is considered "at-the-money" if its exercise price is equal to the current market price of the underlying asset. In-the-money options have exercise prices below the current market price, while out-of-the-money options have exercise prices above the current market price. "On-the-money" is not a commonly used term in options trading.

An Option Is ______________ If Its Exercise Price Is Equal