Don Weaver purchased a call option on Dominic InC. with an exercise price of $20. Weaver paid $3.50 for the option, which is an American option that expires in 90 days. Dominic does not pay any dividend, and the stock is currently trading at $22 per share. The moneyness and intrinsic value of this option could be best described as: Moneyness Intrinsic Value ①A. in-the-money $1.50 ②B. in-the-money $2.00 ③C. out-of-the-money $1.50
A．
| A. ① |
B．
| B. ② |
C．
| C. ③ |
参考答案：B
解析：The option is in-the-money because it could be exercised now for a profit. The potential payoff at exercise is the intrinsic value, which would be calculated for a call option as the market price less the strike price, or $22 - 20 = $2.00. Note that the premium paid for the option has no effect on the moneyness or intrinsic value.