Call option and strike price

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Reference no: EM131917196

1. If you buy a call option for $5 and the strike price is $100 and the stock price is $101, then the option is _____ and has an intrinsic value of ______.

a. Out of the money, $1

b. In the money, $1

c. At the money, $1

2. If you buy a put option for $5 and the strike price is $101 and the stock price is $100, then the option is _____ and has an intrinsic value of _____.

a. Out of the money, $1

b. In the money, $1

c. At the money, $1

Reference no: EM131917196

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