Chapter 03 · Section 3.1
Out-of-the-money call option
An out-of-the-money call option has:
d) an exercise price lower than the price of the underlying asset.
No. A call option with an exercise price lower than the price of the underlying asset is an in-the-money call option and not an out-of-the-money call option.
e) a positive time value.
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.
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