A. stock price > exercise price
B. stock price < exercise price
C. bond price > treasury price
D. treasury price < bond price
✅ The correct answer is option A.
Intrinsic value of call option is considered as in money if stock price > exercise price. The intrinsic value of both call and put options is the difference between the underlying stock’s price and the strike price.
Intrinsic value of call option is considered as in money if stock price > exercise price. The intrinsic value of both call and put options is the difference between the underlying stock’s price and the strike price.