out-of-the-money option
Definition
Option with a negative intrinsic value. A call-option is out-of-the-money when its exercise price is above the current market price of the underlying contract. A put option is out-of-the-money when its exercise price is below the current market price of the underlying contract. Also called underwater option. See also at the money option and in the money option.
out-of-the-money option is in the Commodities & Precious Metals Trading, Currency Trading, Disaster Planning & Risk Management, Investing and Securities & Futures Trading subjects.
out-of-the-money option appears in the definitions of the following terms: at-the-money option, underwater option and in-the-money option
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