out-of-the-money

(foreign exchange) An option is out-of-the-money in the following cases:
(1) Call option: market price less than the strike price.
(2) Put option: market price greater than the strike price.
For European options, replace the market price by the forward price of the underlying instrument on the expiry date of the option. See call option; put option; option; in-the-money.

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