Multiple Choice
The current market price of a share of Coca Cola stock is $50. If a call option on this stock has a strike price of $45, the call
A) is out of the money.
B) is in the money.
C) sells for a higher price than if the market price of Coca Cola stock is $40.
D) is out of the money and sells for a higher price than if the market price of Coca Cola stock is $40.
E) is in the money and sells for a higher price than if the market price of Coca Cola stock is $40.
Correct Answer:

Verified
Correct Answer:
Verified
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