If a Microsoft January 20 Call Option with a Strike

question 56

Multiple Choice

If a Microsoft January 20 call option with a strike price of $20 was selling for $6.62 and the market price of the underlying Microsoft stock was $25.62,the price of the call option would be _______________.

• A)in-the-money
• B)out-of-the-money
• C)fairly priced
• D)not enough information to tell

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Definitions:

Self-Serving Bias

A common tendency for individuals to attribute positive outcomes to their own actions and negative outcomes to external factors.

Consensus

A general agreement among a group of people, often achieved through discussion and compromise.

Distinctiveness

The quality or state of being notably different or unique in comparison to others, allowing for recognizable differentiation.

Consistency

The quality of always behaving or performing in a similar way, maintaining a standard.