A put option on Euro has a strike (exercise) price of $0.56/€. This put option is...
A put option on Euro has a strike (exercise) price of $0.56/€. This put option is referred to as “Out of the money” if the exchange rate ___________.
a. is below $0.56/€. b. is at $0.56/€. c. is above $0.56/€. d. None of the above.
Homework Answers
The put option will be out of money, if the exchange rate is above the strike price of $0.56/ Euro. Put option will be in - the money, when the exchange rate will be below the strike price.
So, the correct option is option C.
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A put option on Euro has a strike (exercise) price of $0.56/€.
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