Answered

Westonci.ca connects you with experts who provide insightful answers to your questions. Join us today and start learning! Explore a wealth of knowledge from professionals across different disciplines on our comprehensive platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

the current price of a stock is 200 if a coll option on this stock has a strike price of 201 the call is

Sagot :

Tundexi

The call in this scenario is known as Out of the money (OTM).

Out of the money is when an option has no intrinsic value but rather, has an extrinsic value.

  • Here, the current stock price is below the strike price of 201,then, we say that the call is out of money.

  • A call option is called Out of the money when the underlying price is trading below the strike price of the call.

Hence, the call in this scenario is known as Out of the money (OTM)

Read more about Out of the money (OTM):

brainly.com/question/15684431

We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.