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Suppose the Current Spot Rate for the Australian Dollar Is

Question 7

Multiple Choice

Suppose the current spot rate for the Australian dollar is U.S.$0.8321.The intrinsic value of an A$50,000 call option with an exercise price of U.S.$0.8195 is


A) $0
B) $630
C) $740
D) $2,340

Correct Answer:

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