Multiple Choice
Which of the following is correct?
A) The longer the time to maturity, the less the value of a currency call option, other things equal.
B) The longer the time to maturity, the less the value of a currency put option, other things equal.
C) The higher the spot rate relative to the exercise price, the greater the value of a currency put option, other things equal.
D) The lower the exercise price relative to the spot rate, the greater the value of a currency call option, other things equal.
Correct Answer:
Verified
Correct Answer:
Verified
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