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With the growing popularity of electric cars, you think that the demand for lithium batteries will grow for many years. To profit from this expectation,
With the growing popularity of electric cars, you think that the demand for lithium batteries will grow for many years. To profit from this expectation, you are considering call options on the shares of Lithium America (NYSE: LAC), a lithium mining company. The companys stock is currently trading for $14. Call options on LAC shares that expire in 3 months with a strike price of $10 are trading for $8. Which of the following best characterises these puts?
a) out-of-the-money
b) deep-in-the-money
c) at-the-money
d) in-the-money
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