Which of the following is an example of a call option which is out of the money?
A) The option to sell at $11, the stock is worth $12.
B) The option to buy at $13, the stock is worth $12.
C) The option to buy at $12, the stock is worth $12.
D) The option to sell at $13, the stock is worth $12.
E) The option to buy at $11, the stock is worth $12.

Question

Quizplus · Accepted Answer

A call option is out of the money when the strike price is higher than the current stock price. In option B, the strike price ($13) is higher than the stock price ($12).

Which of the Following Is an Example of a Call