Out Of The Money Financial Glossary

What is it? The situation where an option has only time value as opposed to intrinsic value because of the relationship between the options strike price and the current market price for the underlying instrument, the spot price. A call option is out of the money when the strike price is above the spot price. A put option is out of the money when the strike price is below the spot price.

Finance Term Definition Added By: Alexis

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