Which of the following options are out of the money?
A) Price of the underlying = $18; Exercise price of the put option = $20
B) Price of the underlying = $30; Exercise price of the put option = $30
C) Price of the underlying = $50; Exercise price of the call option = $55
D) Price of the underlying = $50; Exercise price of the call option = $45
E) Price of the underlying = $45; Exercise price of the call option = $45

Question

Quizplus · Accepted Answer

D  E  A put option is out of the money if the exercise price is less than the price of the underlying. A call option is out of the money if the exercise price is greater than the price of the underlying.

Which of the Following Options Are Out of the Money