- CFA Exams
- CFA Level I Exam
- Topic 7. Derivatives
- Learning Module 8. Pricing and Valuation of Options
- Subject 1. Option Exercise Value, Moneyness, and Time Value
CFA Practice Question
Which of the following options is most likely to have the highest value?
B. At-the-money put option
C. Out-of-money put option
A. In-the-money put option
B. At-the-money put option
C. Out-of-money put option
Correct Answer: A
In-the-money options are more expensive than the at-the-money options. At-the-money options are more expensive than the out-of-money options.
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