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.
  Yes. Note that an out-of-the-money call option has no intrinsic value. Continue
  d) an exercise price lower than the price of the underlying asset.
  e) a positive time value.

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