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Finra Series-7 Exam - Topic 6 Question 20 Discussion

A call option is in the money when the market value of the underlying stock is:
C) higher than the strike price of the option
A) lower than the strike price of the option
B) the same as the strike price of the option
D) higher than the strike price plus the premium

Finra Series-7 Exam - Topic 6 Question 20 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 20
Topic #: 6
[All Series-7 Questions]

A call option is in the money when the market value of the underlying stock is:

Show Suggested Answer Hide Answer
Suggested Answer: C

higher than the strike price of the option. The premium paid is not relevant. All that matters are the strike price of the option relative to the market value of the underlying stock.


by Leonora at May 07, 2022, 02:21 AM

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Frederica
9 months ago
Definitely C, that's the definition!
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Simona
10 months ago
I thought it was more complicated than that.
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Brinda
10 months ago
Wait, is it really that simple?
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Joana
10 months ago
Totally agree, that's how it works!
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Lura
10 months ago
It's C, higher than the strike price!
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Corinne
10 months ago
I thought it was B at first, but now I’m leaning towards C. It seems logical that the option would only be valuable if the stock is above the strike price.
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Renea
11 months ago
I’m a bit confused about the premium part in option D. Does that mean it has to be significantly higher than the strike price?
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Charlene
11 months ago
I remember practicing a similar question, and I believe the correct answer is C. It makes sense that the stock needs to be above the strike price.
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Bernardine
11 months ago
I think a call option is in the money when the stock price is higher than the strike price, but I'm not completely sure.
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Raul
11 months ago
Destruction is a good option, but I'm leaning more towards purging. Overwriting the data multiple times seems like it would be a more thorough way to remove any trace of it.
upvoted 0 times
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Ria
11 months ago
This is a good test of my understanding of TLS/SSL and Traps 3.4 deployment requirements. I'll carefully analyze each option and make sure I select the two that are valid based on the information provided.
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