Business and Personal Finance Dictionary

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• OUT-OF-THE-MONEY OPTION
  
  A call option is "out of the money" if the strike price is greater than the market price of the underlying security. That is, you have the right to purchase a security at a price higher than the market price, which is not valuable. A put option is out of the money if the strike price is lower than the market price of the underlying security.
  
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