Question
When the spot price of a Call Option is less than the
strike Price of an Option, the Option is said to be _______Solution
In the case of a call option when the spot price (market price at present) is less than the strike (exercise price) then the option is said to be out of the money and will not be exercised by the option holder. As the holder can get the underlying asset at a lower price from the market rather than through the call option.
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