Examveda
Examveda

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.

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