Suppose It Is January 1990 and the Current Spot Rate

question 4

Multiple Choice

Suppose it is January 1990 and the current spot rate for the DM is $0.592The call premium on a call option with an exercise price of $0.5675 is $0.037What is the intrinsic value of one DM 62,500 call option?

• A) $2,331.25
• B) $1,562.50
• C) $950.00
• D) $768.75

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Definitions:

Bronchi

The two branches of the trachea that enter the lungs.

Wheezing

A high-pitched whistling sound made while breathing, often associated with difficulty breathing and found in conditions like asthma.

Coughing

A sudden, often repetitive, expulsion of air from the lungs through the throat and mouth, sometimes involuntarily, as a reflex action.

Coronary Arteries

The arteries that supply blood to the heart muscle, crucial for providing the necessary oxygen and nutrients.