Question

A call option on Japanese yen has a strike (exercise)  price of $.012. The present exchange rate is $.011. This call option can be referred to as:​

Accepted Answer

A)  in the money.
B)  out of the money.
C)  at the money.
D)  at a discount.E) C) and D)
F) All of the above

Exam 5: Currency Derivatives

A call option on Japanese yen has a strike (exercise) price of $.012. The present exchange rate is $.011. This call option can be referred to as: