Options: Contract Basics

Question 1

Call Option:
In The Money (ITM):

Answer 1

Above Strike (Stock Price)

Question 2

Put Option:
In The Money (ITM):

Answer 2

Below Strike (Stock Price)

Question 3

Call Option:
At The Money (ATM):

Answer 3

At The Strike (Stock Price)

Question 4

Put Option:
At The Money (ATM):

Answer 4

At The Strike (Stock Price)

Question 5

Call Option:
Out Of The Money (OTM):

Answer 5

Below Strike (Stock Price)

Question 6

Put Option:
Out Of The Money (OTM):

Answer 6

Above Strike (Stock Price)