Multiple Choice
In the CURRENCY TRADING section of The Wall Street Journal, the following appeared under the heading OPTIONS: Which combination of the following statements are true? (i) - The time values of the 68 May and 69 May put options are respectively .30 cents and .50 cents.
(ii) - The 68 May put option has a lower time value (price) than the 69 May put option.
(iii) - If everything else is kept constant, the spot price and the put premium are inversely related.
(iv) - The time values of the 68 May and 69 May put options are, respectively, 1.63 cents and 0.83 cents.
(v) - If everything else is kept constant, the strike price and the put premium are inversely related.
A) (i) , (ii) , and (iii)
B) (ii) , (iii) , and (iv)
C) (iii) and (iv)
D) (iv) and (v)
Correct Answer:

Verified
Correct Answer:
Verified
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