A call option described as out of the money would find:
A)The market price of the stock is above the strike price.
B)The option has been exercised.
C)The option has expired.
D)The strike price is above the market price of the stock.

Question

Quizplus · Accepted Answer

Out of the money option means that the option holder would not make a profit by exercising the option at the current market price. Thus, the strike price is higher than the market price of the stock, so option D is the correct answer.

A Call Option Described as Out of the Money Would