Chapter 03 · Section 3.1

Out-of-the-money call option

An out-of-the-money call option has:

a) a premium higher than the price of the underlying asset.
b) a premium lower than the price of the underlying asset.
c) an exercise price higher than the price of the underlying asset.
d) an exercise price lower than the price of the underlying asset.
e) a positive time value.

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