If a call has a positive intrinsic value at expiration the call is said to be:...

Question

Question

If a call has a positive intrinsic value at expiration the call is said to be:

funded.

unfunded.

at the money.

in the money.

out of the money.

business finance

Answer 1

Answer #1

please find below the solution.. let me know if you need any clarification..

correct answer is option : in the money.

Call is said to be in the money if exercise price is lower than current price. Intrinsic value = Stock current price - exercise price.

Therefore answer = In the money.

Answer 2

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