What Is the Intrinsic Value of a Foreign Currency Option

question 9

Multiple Choice

What is the intrinsic value of a foreign currency option?

• A) The difference between the spot rate and the strike price
• B) The gain that could be realized if the option was exercised immediately
• C) The chance that a currency will rise over time to make the option in the money
• D) The difference between a call option and a put option

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