What is the intrinsic value of a foreign currency option?
A. the difference between the spot rate and the strike price
B. the gain on the option if it was exercised immediately
C. the chance that a currency will rise over time to make the option in the money
D. the difference between a call option and a put option
Answer:B
What is the intrinsic value of a foreign currency option?
A. the difference between the spot rate and the strike price B. the gain on the option if it was exercised immediately C. the chance that a currency will rise over time to make the option in the money D. the difference between a call option and a put option