Answered

Connect with a global community of knowledgeable individuals on IDNLearn.com. Find the information you need quickly and easily with our reliable and thorough Q&A platform.

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 :

Tundexiidn

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

Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Find clear answers at IDNLearn.com. Thanks for stopping by, and come back for more reliable solutions.