An investor paid ($10) for an option that is currently in-the-money ($5.) If the underlying is priced

Question:

An investor paid \($10\) for an option that is currently in-the-money \($5.\) If the underlying is priced at \($90,\) which of the following best describes that option?

a. Call option with an exercise price of \($80\)

b. Put option with an exercise price of \($95\)

c. Call option with an exercise price of \($95\)

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals Of Investing

ISBN: 9781292153988

13th Global Edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

Question Posted: