"In the money options" refer to:
Answer: (d)
The phrase "in the money option" refers to a stock option where the market price of the underlying security is higher than the exercise price. This allows the option holder to buy the stock for less than it sells for in the stock market. By way of example, a holder could own options to acquire 1000 shares of IBM stock, exercisable at $100 per share. When IBM stock is trading over $100 per share, the option is in the money. The higher the market price over the exercise price, the more that the option is in the money.
