The current price of a stock is 80. Both call and put options on this stock are available for purchase at a strike price of 65. Determine which of the following statements about these options is true.
(A) Both the call and put options are at-the-money.
(B) Both the call and put options are in-the-money.
(C) Both the call and put options are out-of-the-money.
(D) The call option is in-the-money, but the put option is out-of-the-money.
(E) The call option is out-of-the-money, but the put option is in-the-money.

Answer rating: 100% (QA)

The correct answer is Option D This is because when an option is in the money it indicates it ... View the full answer