The Fair Market Value of a Near-Month Call Option with a Strike

question 51

Multiple Choice

The fair market value of a near-month call option with a strike price of $45 is $5, when the stock is trading at $48.
Based on the preceding information, the call option:

• A) has no intrinsic value currently.
• B) is at the money.
• C) is out of the money.
• D) is in the money.

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Definitions:

Abundant Opportunities

A situation in which there are numerous possibilities available to pursue, often related to employment, investment, or personal growth.

Burglary

The unlawful entry into a building or other location with the intent to commit theft or any felony.

10-11 P.M.

A time slot in the late evening, often associated with adult-oriented television programming or the hour before midnight.

4-5 A.M.

A time period in the early morning often considered quiet and still, sometimes associated with spiritual or reflective practices.