A call option on a stock is said to be out of the money if
A)the exercise price is higher than the stock price.
B)the exercise price is less than the stock price.
C)the exercise price is equal to the stock price.
D)the price of the put is higher than the price of the call.

Question

Quizplus · Accepted Answer

An option is said to be out of the money if exercising it would not result in a profit for the holder. For a call option, this means that the exercise price is higher than the stock price.

A Call Option on a Stock Is Said to Be