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

question 25

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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