Finra Exam Series-7 Topic 6 Question 20 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 20
Topic #: 6

[All Series-7 Questions]

A call option is in the money when the market value of the underlying stock is:

Alower than the strike price of the option

Bthe same as the strike price of the option

Chigher than the strike price of the option

Dhigher than the strike price plus the premium

Show Suggested Answer

Suggested Answer: C

higher than the strike price of the option. The premium paid is not relevant. All that matters are the strike price of the option relative to the market value of the underlying stock.

by Leonora at May 07, 2022, 02:21 AM

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