If the exercise price is greater than the current stock price, the call option is out-of-the- money but the put option is in-the-money.

Name: If the exercise price is greater than the current stock price, the call option is out-of-the- money but the put option is in-the-money.
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Question

Quizplus · Accepted Answer

A call option is out-of-the-money when the exercise price is above the current stock price, while a put option is in-the-money under the same condition.

If the Exercise Price Is Greater Than the Current Stock