n NISM Certifications
XIII NISM Series XIII
Medium

Which of these is true for an 'In-the-money' option?

Practice question from NISM Series XIII for SIF - Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    'In-the-money' has a negative intrinsic value

  2. B

    'In-the-money' option has zero time value

  3. C

    'In-the-money' option cannot be profitably exercised by the holder immediately

  4. 'In-the-money' has a positive intrinsic value

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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