Which of the Following Statements Is True

question 68

Multiple Choice

Which of the following statements is true?

• A)A call option is said to be out-of-the-money if the underlying stock is selling above the exercise price of the option.
• B)A put option is said to be in-the-money if the underlying stock is selling below the exercise price of the option.
• C)A put option is said to be out-of-the-money if the underlying stock is selling below the exercise price of the option.
• D)A call option is said to be in-the-money if the underlying stock is selling below the exercise price of the option.