Accounting · Financial Management
A standard call option is considered to be 'in-the-money' when:
- 1The spot price of the underlying asset is exactly equal to the strike price
- 2The option premium is greater than its intrinsic value
- 3The spot price of the underlying asset is greater than the strike price✓
- 4The spot price of the underlying asset is less than the strike price
Correct answer
The spot price of the underlying asset is greater than the strike price
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