​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:

Developing Problem Statement

the process of outlining a clear, concise description of the issues that need to be addressed by a project or study.

Credibility

The quality of being trusted, believed, or convincing; crucial for effective communication and persuasion.

Main Idea

The main idea refers to the primary or central concept, point, or message that an author or speaker is trying to communicate to the audience.

Indirect Approach

A method of communication where the main point or request is not presented at the beginning but rather after an explanation or background information.