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A six-month call option on Nike stock sells for $3.00 and Nike is currently selling a...

  1. A six-month call option on Nike stock sells for $3.00 and Nike is currently selling a $60 per share. If the current price is the strike price, at what price will this option be “in the money”?

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Answer #1

A call Option is in the money when the Strike Price is less than the Current Market Price of the Stock.

Strike Price < Current Market Price

So, Strike price is $ 60, the Option will be called as "in the money" at price above the strike price i.e Prices above $60 i.e. $ 61 or above.

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