A call option on Brocklehurst Corp. has an exercise price of $30. The current stock price of Brocklehurst Corp. is $32. The call option is ________.
A) at the money
B) in the money
C) out of the money
D) knocked in

Question

Quizplus · Accepted Answer

A call option is in the money when the stock price is above the exercise price. In this case, the stock price is $32, which is higher than the exercise price of $30, so the call option is in the money.

A Call Option on Brocklehurst Corp