n NISM Certifications
XIII NISM Series XIII
Medium

In currency options, the 'Intrinsic Value' is the difference between the spot rate and strike price when favorable. For a call option, it is positive when:

Practice question from NISM Series XIII for SIF - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Spot rate > Strike price

    Correct answer

  2. B

    Spot rate < Strike price

  3. C

    Spot rate = Strike price

  4. D

    None of the above

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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