If 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.

Question

Quizplus · Accepted Answer

An option to buy a stock may still have some value even if the current price of the stock is below the strike price. This is because there may be some time left until the option expiration and the stock price may increase before then. Additionally, the option may have some intrinsic value if the stock price has moved close to the strike price.

If the Current Price of a Stock Is Below the Strike