Examveda
Examveda

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

Answer: Option D

Solution(By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

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