Out-of-the-money 1.

(1) An option is said to be out-of-the-money forward when, at a specific point in time, the exercise price is higher than the forward price of the underlying in the case of a call option, or lower than this price in the case of a put option, or out-of-the-money spot when, at a specific point in time, the exercise price is higher than the spot price of the underlying in the case of a call option, or lower than this price in the case of a put option. (2) By extension, this term is used to designate a futures or forward whose forward price, at a specific point in time, is higher than the spot price of the underlying from the buyer's perspective, or lower than the spot price from the seller's perspective.