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A call option for a P5,000,000-face value bond has a strike price of 101. If the market value of the bonds is P5,300,0000, then the option would be  a. Out-the-money  by P250,000  b. In-the-money by P250,000  c. Out-the-money  by P50,000  d. In-the-money by P50,000  e. None among the other choices

A call option for a P5,000,000-face value bond has a strike price of 101. If the market value of the bonds is P5,300,0000, then the option would be  a. Out-the-money  by P250,000  b. In-the-money by P250,000  c. Out-the-money  by P50,000  d. In-the-money by P50,000  e. None among the other choices

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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 A call option for a P5,000,000-face value bond has a strike price of 101. If the market value of the bonds is P5,300,0000, then the option would be 

a. Out-the-money  by P250,000 

b. In-the-money by P250,000 

c. Out-the-money  by P50,000 

d. In-the-money by P50,000 

e. None among the other choices

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