Q681
Call options situation in which strike price is greater than current price of stock is classified as
A.
out-of-the-portfolio
B.
in-the-portfolio
C.
in-the-money
D.
out-of-the-money
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Call options situation in which strike price is greater than current price of stock is classified as in-the-portfolio. Call options are agreements that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other instrument at a specified price within a specific time period.