A put option on British pounds has a strike (exercise) price of $1.48. The present exchange...

Question

Question

A put option on British pounds has a strike (exercise) price of $1.48. The present exchange rate is $1.55. This put option can be referred to as:

Answer 1

Answer #1

A put option is out of money if the spot price is greater than strike price.

So This put option can be referred to as out of the money.

Answer 2

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