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A call option on British pounds has a strike (or exercise) rate of $1.48/BP and the...

A call option on British pounds has a strike (or exercise) rate of $1.48/BP and the current spot rate is $1.55/BP. This option can be referred to as:

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Answer #1

Whenever the current spot rate is greater than the exercise rate, the option is referred to as the in the money option.

Since the current spot rate of $ 1.55/ BP is greater than the exercise rate of $ 1.48 / BP, this option can be referred to as the in the money option.

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