A currency put option is in-the-money when the exercise price is greater than the underlying exchange rate.

Question

Quizplus · Accepted Answer

A currency put option allows the holder to sell a currency at a specified exchange rate. Therefore, if the exercise price (the rate at which the holder can sell the currency) is greater than the current market exchange rate, the option is in-the-money, as it would be profitable to exercise the option.

A Currency Put Option Is In-The-Money When the Exercise Price