An option at-the-money when
A. The strike price is greater than the spot price, in the case of a call option
B. The strike price is greater than spot price, in the case of a put option
C. The option has a ready market
D. The strike price and the spot price are the same
Answer: Option D
Solution(By Examveda Team)
An option is at the money (ATM) if the strike price is the same as the current spot price of the underlying security. An at-the-money option has no intrinsic value, only time value. For example, with an "at the money" call stock option, the current share price and strike price are the same.Related Questions on International Finance and Treasury
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