A call option whose exercise price exceeds the spot price is said to be:
A) in-the-money.
B) at-the-money
C) out-of-the-money.
D) over-the-spot.

Question

Quizplus · Accepted Answer

An option is said to be in-the-money when the exercise price is lower than the spot price, while it is said to be at-the-money when the exercise price is equal to the spot price. Therefore, a call option whose exercise price exceeds the spot price is out-of-the-money. Option D is not a valid term in options trading.

A Call Option Whose Exercise Price Exceeds the Spot Price