Are You Ready to Pass the CFA

Know What to Expect Before Test Day

UWorld’s CFA Level 1 mock exams and practice tests replicate the real exam experience end-to-end, helping you prepare with confidence for test day.
Exam-Level Questions

Built to Challenge You

Get a clear measure of your CFA Level 1 readiness

Each CFA Level 1 mock exam includes 180 brand-new, exam-level questions that are never reused from the QBank.

Why it matters:
You are not testing memory. You are testing mastery.

True-to-Life Testing Environment

Real CFA Exam-Like Interface

Train like it's test day

Our mock exams replicate the Prometric testing interface, so nothing feels unfamiliar when it counts.

Why it matters:
Confidence comes from familiarity.

Built Around the Official CFA Curriculum

Full CFA Level 1 Coverage

Practice what actually matters on exam day

Our mock exams are fully aligned to the latest CFA Level 1 curriculum and carefully weighted across all 10 topic areas to reflect the real exam.

Why it matters:
Not all topics are tested equally. Your practice should reflect that.

2026 CFA Level 1 Exam Topic Distribution

Topic Name Weight No. of Questions
Ethical & Professional Standards 15–20% 27–36
Equity Investments 11–14% 18–21
Financial Statement Analysis 11–14% 24–30
Fixed Income 11–14% 18–21
Portfolio Management 8–12% 9–15
Alternative Investments 7–10% 9–15
Economics 6–9% 15–22
Corporate Issuers 6–9% 15–21
Quantitative Methods 6–9% 15–22
Derivative Investments 5–8% 9–15

* Data based on 2026 CFAI Level 1 expectations

Smarter Study = Faster Progress

Know Where to Focus Next

Every CFA mock becomes a targeted study plan

Get instant, data-driven insights that show exactly where to focus next.

Why it matters:
Stop guessing what to study. Focus on what will improve your score.

Know That You Are Exam Ready

What Your UWorld Mock Exam Score Actually Means

One of the biggest gaps in CFA Level I practice is knowing what your score actually means. We provide structured readiness bands that translate your result into a clear action plan.
< 60% Targeted Review Required
60-64% Borderline, Keep Studying
65-69% You’re Almost There
70-74% Strong Trajectory
75%+ Maintain Sharpness
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Choose Your CFA Level 1 Study Package

Get the CFA Level 1 Mock exams on its own or as part of a complete prep system with study guides, QBank, and expert-led learning tools.

How Many Mock Exams Should You Take?

Candidates who pass typically complete four to six full-length CFA Level 1 Mock Exams.

Candidate Profile Recommended Mocks What You Should Focus On
Short on time or feeling burned out
2 to 3 (max)
Prioritize high-quality mocks and spend 2–3x time reviewing mistakes and weak areas
Scoring below 60% or inconsistent studying
2 to 3
Focus on content gaps first, use mocks to diagnose weak topics rather than for repetition
Scoring 60 to 70% consistently
3 to 4
Use mocks to improve timing, reinforce concepts, and close performance gaps
Scoring 70%+ and exam-ready
4 to 5
Maximize exam-day readiness, build stamina, and refine strategy with repeated exposure
Short on time or feeling burned out
Recommended Mocks

2 to 3 (max)

What You Should Focus On

Prioritize high-quality mocks and spend 2–3x time reviewing mistakes and weak areas

Scoring below 60% or inconsistent studying
Recommended Mocks

2 to 3

What You Should Focus On

Focus on content gaps first, use mocks to diagnose weak topics rather than for repetition

Scoring 60 to 70% consistently
Recommended Mocks

3 to 4

What You Should Focus On

Use mocks to improve timing, reinforce concepts, and close performance gaps

Scoring 70%+ and exam-ready
Recommended Mocks

4 to 5

What You Should Focus On

Maximize exam-day readiness, build stamina, and refine strategy with repeated exposure

Frequently Asked Questions

CFA Level 1 Mock Exam: FAQS

UWorld takes a fundamentally different approach to CFA Level 1 mock exam preparation that prioritizes conceptual mastery, diagnostic depth, and exam-day simulation over passive content review.

What Makes UWorld Different:

  1. Explanation-First Approach: While Kaplan Schweser provides answer rationales, UWorld delivers comprehensive question-level breakdowns including step-by-step calculations, conceptual walkthroughs, and a clear explanation of why each incorrect answer choice is wrong. Understanding why distractors fail is critical for eliminating traps on exam day.
  2. Advanced Performance Analytics: UWorld’s analytics go beyond a raw score. Topic-level breakdowns, time-per-question data, and error classification give you a precise improvement plan after every mock instead of a number to interpret on your own.
  3. Rigorous Quality Standards: Every UWorld mock exam question is drafted by subject matter experts, validated by CFA charterholders, and reviewed for clarity before release ensuring each question reflects the difficulty and logic of the actual exam.

How We Compare:

UWorld vs. Kaplan Schweser: Schweser is a well-established curriculum resource, but its mock exams are primarily designed to reinforce the content you’ve already studied. UWorld is built specifically for simulation and diagnosis delivering mixed-topic sequencing, strict timing, and the kind of analytical feedback that turns a completed mock into a targeted study session.

UWorld vs. CFA Institute: Official mocks are the gold standard for final calibration and should be saved for the weeks closest to exam day. UWorld is designed for the earlier, higher-volume phase of your preparation building stamina, exposing weaknesses, and reinforcing concepts through repeated simulation before your official attempts. CFA Institute mocks should be used for final calibration in the weeks closest to exam day.

The Bottom Line: UWorld doesn’t just test what you’ve learned, it shows you exactly where your preparation gaps are and gives you the tools to close them before exam day.

Our online mock test replicates the format and pacing of the actual exam so you can focus on solving problems, not adjusting to an unfamiliar interface. Each full-length simulation includes:

  • 180 questions with realistic topic weight distribution.
  • Prometric-style navigation tools.
  • A strict timing structure.

By mirroring the digital environment you will face at the test center, we help eliminate technical surprises on exam day. This high-fidelity simulation ensures that your muscle memory is as prepared as your mind when you sit for the actual charter transition.

UWorld CFA Level 1 mock exams are calibrated to match or slightly exceed real exam difficulty, so test day feels structured and manageable. Every question is built through a rigorous internal development process:

  • In-house CFA charterholders draft each question against current Learning Outcome Statements (LOS).
  • Every answer and explanation is meticulously reviewed for technical accuracy.
  • Questions are evaluated for clarity and calibrated to exam-level difficulty standards.

By practicing with questions designed to be at or above exam difficulty, test day will feel like just another study session.

Mock exams cannot guarantee an outcome but a structured mock gives you something more useful than a prediction, it gives you a clear improvement plan. Each time you take one of our Level 1 practice tests, you’ll see:

  • Topic-level performance breakdowns.
  • Time-per-question analysis.
  • Error classification to identify patterns across your attempts.

These analytics transform your score into a roadmap for your final weeks of study. Understanding why you are scoring a certain way is far more predictive of success than the number itself.

Yes. Every mock exam is mapped directly to current Learning Outcome Statements (LOS) and updated when curriculum standards change. Each question also undergoes a final accuracy and clarity audit before release. This rigorous alignment process ensures you aren’t wasting time on retired concepts or outdated financial reporting standards. It also allows you to trust that the difficulty level and terminology stay consistent with the most recent Institute guidelines.

Most candidates target 70% or higher, but a single score matters less than what it reveals. Using our performance reporting, candidates will immediately know what to focus on in order to build:

  • Consistency across multiple mock attempts.
  • Stability in high-weight topics like Ethics and Financial Reporting.
  • Reducing careless errors while maintaining strong time discipline.

While the Minimum Passing Score (MPS) varies each year, consistently achieving a score above 70% on CFA practice tests can indicate you are more likely to pass the actual exam. Given that we do not reuse QBank questions in our mock exams, consistently hitting this mark across different question sets indicates a robust grasp of the core curriculum and that you’re on the right track to achieving your goal.

Disciplined debrief is what converts mistakes into score gains. After each attempt, you should:

  • Classify every missed question by root cause (not just topic).
  • Identify repeated weaknesses across your tests.
  • Run targeted drills on high-weight sections.
  • Reattempt flagged questions after remediation.

Many students make the mistake of reading the answer and moving on without addressing the underlying logic gap. A successful review requires you to prove you can solve the problem from scratch without looking at the solution again.

Most candidates who pass begin preparing with full-length practice exams six weeks before exam day. The reason is that starting earlier gives you time for:

  • Four to six complete simulations.
  • Structured review cycles.
  • Targeted topic reinforcement.

Starting too late limits how much improvement is possible. This “window of refinement” allows you to pivot your strategy if you discover a major knowledge gap in a heavy-weight topic. It also prevents the burnout that often comes from trying to cram multiple 180-question exams into the final week.

Candidates who pass typically complete four to six mock exams under strict exam conditions. Volume alone has limited impact; improvement comes from:

  • Consistent timed practice.
  • Pattern recognition across your attempts.
  • Corrective drilling between mocks.

Taking too many mocks without reviewing them leads to “plateauing,” where you keep making the same mistakes. Quality reflection between these four to six attempts is what actually drives your score toward the passing threshold.

A practice test checks knowledge in isolation, while a full mock simulates the complete exam experience. The key differences found in a full mock include:

  • Mixed-topic sequencing.
  • Realistic pacing.
  • Full-length stamina rehearsal.
  • Deeper diagnostic analytics.

Practice tests are excellent for mastering a specific chapter, such as Fixed Income or Derivatives. However, only a full mock forces you to manage the cognitive load of switching between disparate subjects rapidly.

Yes. Many high performers stack both strategically by:

  • Using third-party mocks to stress-test weaknesses throughout prep.
  • Reserving official mocks for final calibration closer to exam day.
  • Comparing performance patterns across providers.

This multi-source approach ensures you are prepared for various ways a single concept might be questioned. It also gives you a broader perspective on what “exam-level difficulty” truly feels like.

Repeated full-length simulations build the pacing, stamina, and familiarity that lower performance anxiety on test day. A full mock helps you:

  • Train under strict time constraints across a mixed-topic sequence.
  • Build mental stamina through complete session rehearsal.
  • Reduce uncertainty by making the exam format feel routine.

When the environment feels familiar, your brain can devote more energy to complex analysis rather than processing environmental stress. Over time, the “fear of the unknown” is replaced by a professional rhythm that keeps you calm under pressure.

Yes. Our free trial includes select questions from the full question bank so you can evaluate the interface, explanation quality, and analytics dashboard before committing. This allows you to experience our “Active Learning” philosophy and see how our explanations bridge the gap between theory and practice. You can explore the user-friendly layout to ensure it fits your study style before making a financial investment.

Every question includes a step-by-step walkthrough, not just the correct answer. Explanations cover:

  • Full calculation walkthroughs and conceptual breakdowns.
  • Analysis of why incorrect choices are wrong.
  • Visual aids for complex concepts.

We focus on teaching the “why” behind the math so you can apply the logic to slightly different question variations. Our goal is to turn every mistake into a mini-lesson that reinforces your long-term retention.

Each mock goes through a layered review process before release, including:

  • Expert drafting by subject matter experts.
  • CFA charterholder validation.
  • Clarity and ambiguity reviews.
  • A final quality audit.

This structured process ensures reliability across every question and eliminates the frustration of “broken” or ambiguous practice problems. We take pride in maintaining a standard that matches the precision of the CFA Institute itself, meaning you can spend your time learning rather than questioning the practice materials.

A high score on a short sample test may not expose the patterns that determine real exam performance. Without structured analytics, it’s easy to miss:

  • Timing inefficiencies that compound under full-exam conditions.
  • Tendencies to fall for trap answer choices.
  • Topic volatility caused by small question samples.

Short tests often fail to test your “mental switch” between unrelated topics, which is a core challenge of the actual Level 1 exam. True confidence comes from proving you can maintain that accuracy over a grueling, multi-hour session.

Yes. Retakers benefit heavily from:

  • Fresh question sets that avoid pattern overfitting.
  • Diagnostic analytics to isolate persistent weaknesses.
  • Structured debrief workflows.

Often, retakers fail because they’ve accidentally memorized their old study materials; new questions force a genuine re-engagement with the curriculum. Our platform helps you identify exactly where the previous attempt fell short so you can walk into the testing center with a new level of certainty.

Final Countdown

How to Use CFA Level I Mock Exams in the Final 60 Days

Top-performing candidates do not guess their strategy. They follow a structured cadence using each cfa level 1 mock exam to build readiness progressively.
6 Weeks Before Exam

Assess

Take a full mock under timed conditions. Establish baseline performance and surface core weaknesses.

3–5 Weeks Before Exam

Target

Use each mock to close gaps and reduce error rates. Focus on tightening accuracy and control under time pressure.

2 Weeks Before Exam

Simulate

Take full mocks under real exam conditions. Build pacing discipline, endurance and decision-making consistency.

Final Week

Lock-In

Stop chasing new content. Reinforce formulas, Ethics patterns, and execution speed. Arrive sharp, not overloaded.

Not All CFA Prep Is Created Equal

Why UWorld Is the Smarter Way to Prep for the CFA

No other CFA online prep platform combines exam alignment, expert strategy, and advanced analytics at this price point.

Comparison Factor UWorld Mocks Other Prep Providers
Explanation Logic
✦ Elite

Uses "Mini-Lesson" methodology. Visual-heavy rationales explain the why for every distractor, not just the correct answer.

● Variable/Low

Often provides circular reasoning (e.g., "A is correct because it is not B") or relies on long video lookups.

Interface Fidelity
✦ 1:1 Mirror

Precise replication of the Prometric software interface to eliminate "platform shock" on exam day.

● Generic

Most use standard web-forms that do not simulate the specific font, spacing, or navigation of the actual CBT environment.

Difficulty Rigor
✦ Engineered High

Built to be slightly more challenging than the exam to create a "Safety Margin" for candidates.

● Inconsistent

Legacy providers are often cited as "too easy," while lecture-heavy platforms can be "too nuanced."

Remediation Loop
✦ Integrated

Mocks map directly back to QBank targets. Users can generate one-click "Weakness Tests" after a mock.

● Manual

Candidates must manually cross-reference missed mock topics with study notes or separate question sets.

Score Calibration
✦ Conservative

A 65% on UWorld is a high-confidence signal for a 70%+ on the real exam.

● Uncertain

Candidates often report "Mock Panic" because scores don't correlate across different providers.

Analytics Depth
✦ Behavioral

Tracks "Time per Question" and "Guessing Behavior" to standard percentile rankings.

● Academic

Primarily focuses on raw percentage scores and basic topic-level averages.

Volume & Value
✦ Up to 5 Full Mocks

Scalable from a single mock ($59) to a full suite in the Elite tier.

● Bundled

Often requires paying $700+ full course to get more than 2 mocks.

Explanation Logic
UWorld Mocks ✦ Elite

Uses "Mini-Lesson" methodology. Visual-heavy rationales explain the why for every distractor, not just the correct answer.

Other Prep Providers ● Variable/Low

Often provides circular reasoning (e.g., "A is correct because it is not B") or relies on long video lookups.

Interface Fidelity
UWorld Mocks ✦ 1:1 Mirror

Precise replication of the Prometric software interface to eliminate "platform shock" on exam day.

Other Prep Providers ● Generic

Most use standard web-forms that do not simulate the specific font, spacing, or navigation of the actual CBT environment.

Difficulty Rigor
UWorld Mocks ✦ Engineered High

Built to be slightly more challenging than the exam to create a "Safety Margin" for candidates.

Other Prep Providers ● Inconsistent

Legacy providers are often cited as "too easy," while lecture-heavy platforms can be "too nuanced."

Remediation Loop
UWorld Mocks ✦ Integrated

Mocks map directly back to QBank targets. Users can generate one-click "Weakness Tests" after a mock.

Other Prep Providers ● Manual

Candidates must manually cross-reference missed mock topics with study notes or separate question sets.

Score Calibration
UWorld Mocks ✦ Conservative

A 65% on UWorld is a high-confidence signal for a 70%+ on the real exam.

Other Prep Providers ● Uncertain

Candidates often report "Mock Panic" because scores don't correlate across different providers.

Analytics Depth
UWorld Mocks ✦ Behavioral

Tracks "Time per Question" and "Guessing Behavior" to standard percentile rankings.

Other Prep Providers ● Academic

Primarily focuses on raw percentage scores and basic topic-level averages.

Volume & Value
UWorld Mocks ✦ Up to 5 Full Mocks

Scalable from a single mock ($59) to a full suite in the Elite tier.

Other Prep Providers ● Bundled

Often requires paying $700+ full course to get more than 2 mocks.

Ready to See Where You Stand?

Take a full-length CFA Level 1 mock exam and get a clear, data-driven view of your exam readiness.
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Sample CFA Level 1 Mock Questions

Quality speaks for itself. Try out some UWorld Mock Exam questions below.

Select a Question sample.

Select a Question sample.

According to the Modigliani-Miller propositions (with taxes), if a company increases its debt level, its market value will most likely:

  1. decrease since the costs of financial distress are increasing.
  2. remain the same since the market value is unaffected by the capital structure.
  3. increase proportionally to the change in debt.
Submit Next

Explanation:

A graphical tabular representation of Modigliani-Miller propositions

The Modigliani-Miller (MM) propositions assume perfect capital markets (ie, no arbitrage, no transaction or bankruptcy costs, and symmetric information) and assert that a company's market value equals the present value of its future cash flows. Modigliani and Miller propose that, in the absence of taxes:

  • A company's capital structure does not affect its value (MM I without taxes); and
  • A company's cost of equity (re) is directly proportional to its debt-to-equity ratio (D/E), but WACC remains constant (MM II without taxes).

However, these propositions change when there are corporate taxes:

  • The market value of a levered company is greater than the value of an unlevered but otherwise identical company; tax-exempt interest payments improve the levered company's cash flows, increasing its value. The difference in value is the amount of the debt tax shield (tD), which is the product of a company's tax rate (t) and value of debt (D) (MM I with taxes).
  • A company's re is directly proportional to D/E, adjusted by (1 − t). Greater leverage will increase the cost of equity, but at a slower pace due to taxes. The greater the tax rate (t), the slower the increase in re when D/E increases (MM II with taxes).

Therefore, with taxes, an increase in debt will proportionally increase a company's value and reduce its WACC.

(Choice A) The MM propositions assume no cost of financial distress.

(Choice B) The market value would remain the same in the absence of taxes.

Things to remember:
The Modigliani-Miller (MM) propositions assume perfect capital markets (ie, no arbitrage, no transaction or bankruptcy costs, and symmetric information). When these propositions include corporate taxes, greater leverage will increase a company's market value (MM I) and reduce its WACC (MM II).

If a professional organization has standards of conduct in addition to its code of ethics, the purpose of the standards is most likely to describe:

  1. shared principles.
  2. laws and regulations.
  3. acceptable behaviors.
Submit

Explanation:

Instruments for compliance with professional ethics
Instrument Owner Describes
Code of ethics Professional organization Shared principles
Standards of conduct Professional organization Minimally acceptable behavior
Laws and regulations Government Legal limits of behavior

A code of ethics is a professional organization's statement of shared principles. Standards of conduct provide a guide to practicing the principles outlined in the code of ethics. Standards of conduct also clarify the minimally acceptable behaviors required to conform to the code of ethics. Although not addressed directly in standards of conduct, adherence to civil laws and regulations may be the minimally acceptable behavior in some cases.

Standards of conduct may be principle-based or rule-based. Principle-based standards are universally applicable to members of the profession and are based on the principles outlined in the code of ethics. Rule-based standards, while also relating to the principles in the code of ethics, are usually more narrowly applicable and specific to certain members or scenarios that may arise.

A code of ethics may or may not be accompanied by standards of conduct whereas standards of conduct exist only to enhance their associated code of ethics. CFA Institute has adopted both a code of ethics and standards of conduct (the "Code and Standards"); CFA charterholders and candidates are expected to know and comply with both.

(Choice A) Standards of conduct are used to describe minimally acceptable behaviors or practices, given the shared principles of the code of ethics. The code of ethics describes the shared principles.

(Choice B) Standards of conduct do not describe civil laws and regulations.

Things to remember:
Standards of conduct are used to clarify the minimally acceptable behaviors required to conform to the shared principles stated in a code of ethics; they do not address applicable civil laws and regulations.

At the end of 20X4, a hedge fund had $25 million in assets under management (AUM). The fund has the following fee structure, high-water mark, and 20X5 results:

Selected Data
Management fee (average assets) 1%
Incentive fee (net of management fee) 10%
Soft hurdle rate 6%
High-water mark (millions) $27
Year-end fund assets 20X5 (millions) $30

Assuming no inflows or outflows, the incentive fee (in $) earned by this hedge fund for 20X5 is closest to:

  1. 109,000
  2. 272,500
  3. 300,000
Submit

Explanation:

A break-down infographic of Calculation of hedge fund incentive fees

Hedge funds charge a management fee and an incentive fee. The management fee is calculated as a percentage of the total value of the fund's assets under management (AUM). It is assessed each year regardless of profitability.

The incentive fee is levied against the fund's annual gains, subject to certain conditions. It is calculated either gross or net of the management fee. The net calculation subtracts the management fee from AUM to arrive at an adjusted AUM that is used to calculate the fund's profits.

The high-water mark represents the value of AUM, net of fees, at any time during the fund's existence. To earn an incentive fee, the fund must exceed the high-water mark, the base from which the fee is calculated.

The hurdle rate is the minimum profit that the fund must earn (usually annually) before it receives an incentive fee. The hurdle rate can either be "soft," meaning that the incentive fee is calculated based on the entire profit, or "hard," meaning that the incentive fee is based on only the excess profit above the hurdle rate.

In this scenario, the fund generated net returns in 20X5 of 18.9% ( = (29.725 – 25) / 25 ), above the soft hurdle rate of 6%, and eclipsed the high-water mark of $27 million. Therefore, the fund earned an incentive fee of 10% of profits, net of the management fee on average assets of $27,500,000:

0.10 × (29,725,000 − 27,000,000) = $272,500.

(Choice A) $109,000 is the result of incorrectly assuming a hard hurdle rate is in effect.

(Choice C) $300,000 is the incentive fee if management fees are not deducted.

Things to remember:
Hedge funds charge both a fixed management fee and a variable incentive fee. The incentive fee is contingent on whether the fund earns a profit and may be subject to a high-water mark and hurdle rate.

In the short run, a company maximizing profit in a market with perfect competition produces at a quantity that most likely results in:

  1. economic profits equal to zero.
  2. marginal revenue equal to marginal cost.
  3. market price greater than marginal revenue.
Submit

Explanation:

A wave scatter graph visualization of a short-run profit-maximizing price and quantity

A firm operating under perfect competition maximizes economic profit by producing and selling at the quantity where marginal revenue (MR) equals marginal cost (MC). Cost in this context includes opportunity costs (eg, the owners' required return from the business). Perfectly competitive firms can earn economic profits in the short run, but even if economic profits are zero or negative, a firm may be earning an accounting profit.

MR, the incremental revenue from selling one additional unit, depends on the firm's demand curve. In the case of perfect competition, the demand curve for any individual firm is a horizontal line at the market equilibrium price, since demand is perfectly elastic. Therefore, market price equals MR at all quantities (Choice C).

MC, the incremental cost to produce one additional unit, depends on the firm's cost structure. Producing at a quantity greater than where MR = MC means that the incremental cost for each unit exceeds the incremental revenue generated by that unit and the firm generates a loss on each additional unit sold. Producing at a lower quantity means that the firm forgoes economic profit (in the short run) since the additional revenue from a unit sold would exceed the cost of the unit.

(Choice A) Perfectly competitive firms can earn economic profits in the short run. However, in the long-run, the positive economic profits will attract new firms, which will increase supply/lower price until economic profit is zero.

Note: Although this question specifically addresses perfect competition, the condition that firms optimally produce when MR = MC applies to all market structures. It is likely that the exam will have questions on this topic.

Things to remember:
Under perfect competition, a firm maximizes short-run economic profit by producing and selling at the quantity where marginal revenue (MR) equals marginal cost (MC). Since there is perfectly elastic demand, price also equals MR for all quantities. Short-run, but not long-run, economic profits are possible. However, a firm may earn an accounting profit even if economic profits are zero or negative.

An analyst observes the following market data for one American put option:

Selected Data
(in CAD)  
Stock price 48
Strike price 50
Option premium 4

This option's moneyness is best described as:

  1. in the money.
  2. at the money.
  3. out of the money.
Submit Prev

Explanation:

Visualization of Exploring Moneyness: Maximizing Options Trading Potential for Peak Returns

Moneyness refers to the relationship between an option's strike price and the underlying stock price and is indicative of the option's intrinsic value. An option trading at the money or out of the money has no intrinsic value. An option trading in the money has intrinsic value:

  • For an in-the-money call option, the underlying stock price is greater than the strike price. This gives the call owner the right to buy the stock at a price lower than the market price, which in turn gives the option intrinsic value.
  • For an in-the-money put option, the strike price is greater than the underlying stock price. This gives the put owner the right to sell the stock at a price higher than the market price, which in turn gives the option intrinsic value.

In this scenario, the put option's underlying stock price is less than its strike price. Therefore, the option is trading in the money. Note that the option's premium is irrelevant to determining the option's intrinsic value; it would, however, be relevant to determining the option's profit at exercise.

(Choice B) If the stock price equals the strike price, the option is trading at the money (ATM). At expiration, an ATM option is economically equivalent to owning the underlying asset.

(Choice C) For a call option, if the stock price is less than the strike price, the option is trading out of the money (OTM) and has no intrinsic value. The same is true for a put option if the stock price is greater than the strike price.

Things to remember:
Moneyness refers to the relationship between an option's strike price and the underlying stock price. If the stock price equals the strike price, the option is trading at the money. For a call (put) option, if the stock price is greater (less) than the strike price, the option is trading in the money. For a call (put) option, if the stock price is less (greater) than the strike price, the option is trading out of the money.

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