Which of the following conditions would be "in the money" for an American call option for foreign currency?

Question

Quizplus · Accepted Answer

An American call option for foreign currency is "in the money" when the strike price is lower than the spot price. This means that the option holder can purchase the foreign currency at a lower price than they could get in the current market, resulting in a profit. Option A is incorrect as trading being halted does not necessarily have any impact on the option. Option B is incorrect as the strike price being greater than the spot price means the option would be "out of the money." Option C is incorrect as the strike price being equal to the spot price means the option would be "at the money."

Which of the Following Conditions Would Be "In the Money