A call option has a strike price of $33 and the underlying stock price is $25. The moneyness of this call option is best described as:
A) in the money.
B) at the money.
C) out of the money.

Question

Quizplus · Accepted Answer

A call option is considered "out of the money" when the strike price is above the current market price of the underlying asset. In this case, since the strike price ($33) is higher than the stock price ($25), the call option is out of the money.

A Call Option Has a Strike Price of $33 and the Underlying