CFA Practice Question

There are 206 practice questions for this study session.

CFA Practice Question

An in-the-money call option is one ______

I. that has an exercise price below the current market price of the underlying security.
II. that has positive value if exercised.
III. that has an exercise price above the current market price of the underlying security.
Correct Answer: I and II

User Contributed Comments 2

User Comment
sshetty2 We don't factor in the premium?
mcbreatz You would still exercise the option if it is in the money even if it was just to offset part of the premium you paid.
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