The ______ is the price at which a foreign currency option can be exercised-that is, the price at which the foreign currency is bought or sold
A) strike price
B) terms of trade
C) rate of exchange
D) exercise price

Question

Quizplus · Accepted Answer

The strike price is the price at which a foreign currency option can be exercised. It is the price at which the foreign currency is bought or sold. Therefore, option A is the best choice. The other options, such as terms of trade and rate of exchange, are related to currency exchange but not specifically to the price at which an option can be exercised.

The ______ Is the Price at Which a Foreign Currency