1. A call option on Australian dollars has a strike (exercise) price of $.56. The present exchange rate is $.54. This call option can be referred to as:

	a.	at the money.
	b.	in the money.
	c.	at a discount.
	d.	out of the money.

2.The current spot rate of pound is $1.80, and the 90-day forward rate of pound is $1.90. The pound has a forward ______ of ______.

	a.	discount, 5,56%.
	b.	premium, 4.87%.
	c.	premium, 5.56%.
	d.	discount, 4.87%.