- 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 likely to be most expensive?
B. In-the-money European put option
C. Out-of-money European call option
A. At-the-money European call option
B. In-the-money European put option
C. Out-of-money European call option
Correct Answer: B
In-the-money options are the most expensive options followed by at-the-money and out-of-money options.
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