Multiple Choice
Which of the following statements is a true definition of an out-of-the-money option?
A) a call option in which the stock price exceeds the exercise price
B) a call option in which the exercise price exceeds the stock price.
C) a call option in which the exercise price exceeds the stock price
D) a put option in which the exercise price exceeds the stock price.
E) a call option in which the call premium exceeds the stock price
Correct Answer:
Verified
Correct Answer:
Verified
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