When a Currency Call Option Is Classified as "In the Money

question 119

Multiple Choice

When a currency call option is classified as "in the money," this indicates that

• A)the spot rate of the currency is less than the exercise price of the option.
• B)the spot rate of the currency is greater than the exercise price of the option.
• C)the buyer of the option would generate a profit; that is, the spot rate would exceed the sum of the exercise price and the premium paid.
• D)the buyer of the option would generate a profit; that is, the exercise price would exceed the sum of the spot rate and the premium paid

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Definitions:

Barsalou's Studies

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False Memories

Memorable events that did not actually happen or are distorted recollections of what happened.

Neisser

Refers to Ulric Neisser, considered the father of cognitive psychology, focusing on perception and memory.

Memory Processes

The actions or steps your brain takes to acquire, store, retain, and later retrieve information and past experiences.