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  3. Study Set
    Multinational Business Finance
  4. Exam
    Exam 7: Foreign Currency Derivatives: Futures and Options
  5. Question
    If the Exchange Rate's Volatility Is Rising, and Therefore the Risk
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If the Exchange Rate's Volatility Is Rising, and Therefore the Risk

Question 29

Question 29

True/False

If the exchange rate's volatility is rising, and therefore the risk of the option not being exercised is decreasing, the option premium would be increasing.

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