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

Question

Quizplus · Accepted Answer

A call option is out-of-the-money when the exercise price is above the current stock price, because it wouldn't be profitable to exercise the option. Conversely, a put option is in-the-money under these conditions, as it would be profitable to sell the stock at the higher exercise price.

If the Option Exercise Price Is Greater Than the Current