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How the Value of a European Put Option for £1

Question 25

Multiple Choice

How the value of a European put option for £1 will change if the current exchange rate will instantly increase from $1.4/£ to $1.5/£?


A) Increase by $0.1.
B) Increase by an amount that cannot be determined based on the available information.
C) Decrease by $0.1.
D) Decrease by an amount that cannot be determined based on the available information.

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