{"id":49062,"date":"2024-04-15T22:50:21","date_gmt":"2024-04-15T22:50:21","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=49062"},"modified":"2024-04-15T22:50:21","modified_gmt":"2024-04-15T22:50:21","slug":"call-options-situation-in-which-strike-price-is-greater-than-current-price-of-stock-is-classified-as","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/call-options-situation-in-which-strike-price-is-greater-than-current-price-of-stock-is-classified-as\/","title":{"rendered":"Call options situation in which strike price is greater than current price of stock is classified as"},"content":{"rendered":"

[amp_mcq option1=”out-of-the-portfolio” option2=”in-the-portfolio” option3=”in-the-money” option4=”out-of-the-money” correct=”option4″]<\/p>\n

The correct answer is D. out-of-the-money.<\/p>\n

A call option is a contract that gives the buyer the right, but not the obligation, to buy a specified amount of an underlying asset at a specified price on or before a specified date. The strike price is the price at which the buyer can exercise the option. The current price of the stock is the price at which the stock is currently trading.<\/p>\n

A call option is out-of-the-money if the strike price is greater than the current price of the stock. This means that the buyer of the option would not be able to profit by exercising the option, because they would have to pay more for the stock than it is currently worth.<\/p>\n

A call option is in-the-money if the strike price is less than the current price of the stock. This means that the buyer of the option would be able to profit by exercising the option, because they would be able to buy the stock at a lower price than it is currently worth.<\/p>\n

A call option is at-the-money if the strike price is equal to the current price of the stock. This means that the buyer of the option would break even by exercising the option, because they would be able to buy the stock at the same price that it is currently worth.<\/p>\n","protected":false},"excerpt":{"rendered":"

[amp_mcq option1=”out-of-the-portfolio” option2=”in-the-portfolio” option3=”in-the-money” option4=”out-of-the-money” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-49062","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\nCall options situation in which strike price is greater than current price of stock is classified as<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/call-options-situation-in-which-strike-price-is-greater-than-current-price-of-stock-is-classified-as\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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