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rt I: Multiple Choice Questions (10 questions plus 1 bonus) Problems 1-3) The following table is from httpa://ww.investing.com/currencies/torex-options on November 7, 2018. The table displays

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rt I: Multiple Choice Questions (10 questions plus 1 bonus) Problems 1-3) The following table is from httpa://ww.investing.com/currencies/torex-options on November 7, 2018. The table displays some exchange rates in the left gray box and several call and put option prices in the right white box. IGNORE EVERY INFORMATION EXCEPT THE EXCHANCE RATE AND THE OPTON PRICES since we didn't learn the other information such as option Greeks. GBPUSD Options expiring 2018-12-06 (29 Days) 1M Call Options Deta Price Strike Price Deta VolwVega Put Options 1.1441 USDUPY113 55 1 07311037% 1000--414e1 10 74%082%-00009 O0011 00012 016 1.2775 084 GBPUSD 1.3138 USDICHF 1.0017 063% 044% 0.21 047-1.285010035 1 0791 1055% USDICAD 1311222 000 1.2925 -034100085-13000-02-106611020% 27% 00013 AUDIUSD 07281 NZDUSD 06788 EURICAD 15001 EURICHF 1.1450 EURIGBP 0 8708 EURUPY 129 90 URIAUD 15713 GBPJPY 1491 USDICNH 6.9147 USDALS 3.6700 1005% 013% 00014 994% 001% 00015 985% -008% 00015 981% 012% 00014 2.100282-13375-00 251 0281 9S0% -012% O0012 .3075 00191 059 049 001443 1.3150 0.0149051 01847 1.3225 00113 043 3300 -078 1000-13450 L0004, 1 022 | 983% -000% 0 m 12% Implied volatility -Current Week ago 111% USDMN 19.870 USDITRY 5.3661 XAUUSD 12262 9% 25 50 25 . 10 8%-Month ago USD Put della Cal deta Vols GBP Pps GBP % and British pound is $1.3138/S. The price of the ion expiring in 1 month with the exercise price $1.3300/E is $0.0084. The price of the matching put This table displays that the exchange rate between US dollar call opti option (expire in 1 month, $1.3300/E as the exercise price) is $0.0231. 1. (5 points) This information implies a. both the call option and the put option are in-the-money b. both the call option and the put option are out-of-the-money c. the call option is in-the-money, while the put option is out-of the-money d. the call option is out-of-the-money, while the call option is in-the-money. (5 points) The intrinsic value of the call option above is a. $0.0162 b. $0.0084 d. -$0.0162

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