​A Call Option on Australian Dollars Has a Strike (Exercise)

question 46

Multiple Choice

​A call option on Australian dollars has a strike (exercise) price of $.56. The present exchange rate is $.59. This call option can be referred to as:

• A) ​in the money.
• B) ​out of the money.
• C) ​at the money.
• D) ​at a discount

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Definitions:

Third-Country National

An individual who is a citizen of a country but works and resides in a country other than their country of citizenship.

Host-Country National

Individuals who are citizens of the country where a multinational company's subsidiary or operation is located.

Parent-Country National

An employee who is a citizen of the country where the headquarters of the multinational company is located, working abroad.

Parent-Country National

An employee who is a citizen of the country where the multinational company has its headquarters, working abroad in a foreign branch or subsidiary.