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An investor has a call option on YZE stock with a strike (exercise) price of $25....

An investor has a call option on YZE stock with a strike (exercise) price of $25. The current price of YZE stock is $22. The investor’s call option is in-the money.

True

False

Explain the answer please.

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Expert Solution

The call option will be in-the-money when the stock price will be greater than the strike price. Here the strike price is 25 and the current stock price is 22. Since the stock price is less than the strike price, the option is Out of money

The statement is False

jeff jeffy answered 2 years ago
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