Which one of the following options is out of the money?
A)call with a $20 strike and a stock price of $21
B)put with a $35 strike and a stock price of $33
C)call with a $45 strike and stock price of $46
D)put with a $75 strike and a stock price of $70
E)call with a $50 strike and a stock price of $49

Question

Quizplus · Accepted Answer

An option is considered "out of the money" if exercising it would not result in a profit. For a call option, this means the stock price is below the strike price. Option E, a call with a $50 strike and a stock price of $49, fits this description, as exercising the option would not be profitable.

Which One of the Following Options Is Out of the Money