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For European Currency Options Written on Euro with a Strike

Question 73

Multiple Choice

For European currency options written on euro with a strike price in dollars, what of the effect of an increase r€?


A) Decrease the value of calls and puts ceteris paribus
B) Increase the value of calls and puts ceteris paribus
C) Decrease the value of calls, increase the value of puts ceteris paribus
D) Increase the value of calls, decrease the value of puts ceteris paribus

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