Solved

What Is the Intrinsic Value of a Foreign Currency Option

Question 9

Multiple Choice

What is the intrinsic value of a foreign currency option?


A) The difference between the spot rate and the strike price
B) The gain that could be realized if the option was exercised immediately
C) The chance that a currency will rise over time to make the option in the money
D) The difference between a call option and a put option

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions