When a Currency Call Option Is Classified as "In the Money

Multiple Choice

When a currency call option is classified as "in the money," this indicates that

A) the spot rate of the currency is less than the exercise price of the option.
B) the spot rate of the currency is greater than the exercise price of the option.
C) the buyer of the option would generate a profit; that is, the spot rate would exceed the sum of the exercise price and the premium paid.
D) the buyer of the option would generate a profit; that is, the exercise price would exceed the sum of the spot rate and the premium paid.