1. You have accessed the following spot rates: U.S. dollar per pound = 1.50 Yen per U.S. dollar = 100.0 What is the exchange rate yen per pound?
a. 0.01 yen per pound
b. 0.015 yen per pound
c. 66.67 yen per pound
d. 150 yen per pound
2. A call option with a strike price less than the current spot price is said to be _____.
a. non-exercisable
b. in-the-money
c. out-of-the-money
d. at-the-money