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Assume that a GBP call option has an exercise price of USD1.50/GBP. At a spot price of USD1.45/GBP, the call option has an intrinsic value

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Assume that a GBP call option has an exercise price of USD1.50/GBP. At a spot price of USD1.45/GBP, the call option has an intrinsic value of USD 0.00 a time value of USD 0.00 a time value of USD 0.04 an intrinsic value of -USD 0.04

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