CFA Practice Question

There are 206 practice questions for this study session.

CFA Practice Question

A call option that has a strike price ______ its market price is said to be ______ -the-money.

I. greater than; in
II. less than; out
III. equal to; at
Correct Answer: III

In-the-money options have intrinsic value with a market price greater than the strike price. Out-of-the-money options are the opposite, while at-the-money options have a strike price equal to the market.

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