Suppose the current spot rate for the Australian dollar is U.S.$0.8321. Which of the following is correct? The intrinsic value of an A$50,000 call option with an exercise price of U.S.$0.8195 is
A) $0
B) $630
C) $740
D) $2,340

Name: Suppose the current spot rate for the Australian dollar is U.S.$0.8321. Which of the following is correct? The intrinsic value of an A$50,000 call option with an exercise price of U.S.$0.8195 is A) $0 B) $630 C) $740 D) $2,340
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Question

Quizplus · Accepted Answer

(.8321 - .8195) × 50,000 = 630

Suppose the Current Spot Rate for the Australian Dollar Is