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

Answers

Answer 1

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


Related Questions

Other Questions
Scientists primarily use two different techniques to create multiple copies of a DNA sequence: cloning and polymerase chain reaction (PCR). Which of the following statements about these methods is true? Cloning is more rapid than PCR at creating billions of copies of a DNA sequence. PCR can be used to translate DNA into a protein, while cloning cannot. PCR generates more copies of a DNA sequence in less time than cloning. PCR is better at creating copies of large DNA samples than cloning. how do humans affect the lithosphere After earning $50 million in net income, monroe millwork distributed $15 million in dividends to its stockholders. Monroes board of directors decided to invest the remaining $35 million back into the business. This $35 million reinvestment of profits represents. HELP AWARDING BRAINLIEST Need help on this simple question, select the two correct answers (: give two cause-and-effect relationships for the Ottoman Empire and give dates Please help me with this homework 18 ounces. of iced tea costs 2.99. How much will 30 ounces. cost Find the x - and y -intercepts of the graph of the linear equation -4x+8y=-16 . For the oxidationreduction reaction equation2Sc+3Br22ScBr3indicate how many electrons are transferred in the formation of one formula unit of product. x+2x-15x, x-7x+12 and 3x-27 find h.c.f During a collision, a 63.9-kilogram driver of a car moving at 24 m/s is brought to rest by an inflating airbag in 1.2 seconds. What is the magnitude of the force exerted on the driver by the airbag? 14The points A, B and C lle on a straight line.The length of AB is equal to the length of BCWhat are the coordinates of point A?*C(5,6)*B12, 1) b. Ron bicycles forward with an acceleration of 2.1 m/s2. If he is applying a forward force of 195 N, what is his mass? someone help me plsi need it now just simply choose the letter of the correct answer In low light, it's _____ to see details, colors, and distant objects. solve the equation 3/4x - 5 = x give your answers correct to 2 decimal places what time do the rockettes perform in the thanksgiving day parade Please take a look at the picture for the question Which represents discrete data? Question 17 options: A) The price of hamburger meat per pound B) The volume of water in a swimming pool C) The number of pens in a package D) The speed of a train