Call Option-Out of the money
Explain the terminology that an option is in-, at-, or out-of-the-money?
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A call (put) option with St > E (E > St) is referred to as the trading in-the-money. If St ≡ E the option is trading at-the-money. If St < E (E < St) the call (put) option is trading out-of-the-money.
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