A call option is in the money when ...i...; while a put option is in the money when ...ii....Select one:a.S>X X>Sb.Sc.SSd.S=X X=S

Question

A call option is in the money when ...i...; while a put option is in the money when ...ii....Select one:a.S>X X>Sb.Sc.SSd.S=X X=S
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Solution 1

The correct answer is a. S>X X>S.

Here's why:

i. A call option is in the money when the spot price (S) of the underlying asset is greater than the strike price (X). This is because the holder of the call option has the right to buy the asset at the strike price, and if the spot price is higher, t Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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