Stock Z is currently trading at $27 per share. Its three-month call option has a strike price of $33 per share. Z’s three-month put option has a strike price of $25 per share. Which of the following is CORRECT?
Investor should not exercise the call option because it is out of the money
Investor should exercise the put option because it is in the money
Investor should exercise the call option because it is in the money
Investor should let both options expire because they are at the money
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