Examlex
All of the following statements are true EXCEPT:
Out-of-the-money
A term used in options trading referring to options that would not make a profit if exercised immediately because their strike price is unfavorable compared to the current market price.
In-the-money
Describes an option with intrinsic value; for a call option, when the underlying asset's price is above the strike price; for a put option, when it's below.
Put Option
A financial contract that gives the buyer the right, but not the obligation, to sell an underlying asset at a specified price within a certain timeframe.
Exercise Price
Exercise price is the specified price at which the holder of an option can buy (call) or sell (put) the underlying security or commodity.
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