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question one a put option is out of the money if a it strike price is higher than the current market price of the underlying commodity b if the current market price of the underlying commodity is higher than the strike price of the option see its strike price is equal to the current market price of the underlying commodity d if the current market price of the underlying commodity is lower than the strike price of the option the correct answer is b if the current market price of the underlying commodity is higher than the strike price of the option question two a cd with a face value of 10 million euros and a coupon of three percent was issued at par for 182 days and is now trading at 3.10 percent with 120 days remaining to maturity what has been the capital gain or loss since issue a minus 52 161 euros b tier 47 comma 839.00 c minus 827 euros and 67 cents d nil the correct answer is c 3 827 euros and 67 cents question three a time option is an outright forward fx transaction where the