Answer: less than zero.

## Explanation For a call option: - **In the money (ITM)**: When the underlying asset price is **greater than** the exercise price - **At the money (ATM)**: When the underlying asset price is **equal to** the exercise price - **Out of the money (OTM)**: When the underlying asset price is **less than** the exercise price The question states: "exercise price minus the price of the underlying at expiration" Let's denote: - Exercise price = X - Price of underlying at expiration = S So we have: X - S For a call option to be in the money: S > X (underlying price > exercise price) Rearranging: X - S < 0 Therefore, when X - S is **less than zero**, the call option is in the money. **Why the other options are incorrect:** - **Option B (equal to zero)**: This would mean X = S, which is at the money (ATM) - **Option C (greater than zero)**: This would mean X > S, which is out of the money (OTM) **Key takeaway**: For call options, the option is in the money when the underlying price exceeds the exercise price, which mathematically means exercise price minus underlying price is negative.

Author: LeetQuiz .