the current price of a stock is below the strike price, then an option to buy the stock is worthless and will have a zero value.

Name: the current price of a stock is below the strike price, then an option to buy the stock is worthless and will have a zero value.
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Question

Quizplus · Accepted Answer

An option to buy a stock (a call option) may still have value due to its potential future worth before expiration, even if the current stock price is below the strike price. This is known as the option's time value.

The Current Price of a Stock Is Below the Strike