Question
In: Finance
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.
Solutions
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
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