Examveda
Examveda

Situation in financial options in which strike price is less than current price of stock is classified as

A. in-the-money

B. out-of-the-money

C. out-of-the-portfolio

D. in-the-portfolio

Answer: Option A

Solution(By Examveda Team)

Situation in financial options in which strike price is less than current price of stock is classified as in-the-money. A call option is in the money (ITM) if the market price is above the strike price. A put option is in the money if the market price is below the strike price.

This Question Belongs to Commerce >> Financial Management

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