Multiple Choice
Which of the following is not true regarding options?
A) The buyer of a call option has the right to buy the currency at the strike price.
B) The writer of a call option has the obligation to sell the currency to the buyer if the option if exercised.
C) The buyer of a put option has the right to sell the currency at the strike price.
D) The writer of a put option has the obligation to sell the currency to the buyer if the option is exercised.
Correct Answer:

Verified
Correct Answer:
Verified
Q105: A straddle represents the purchase of either
Q106: Non-deliverable forward contracts (NDFs) are frequently used
Q107: If the futures rate is lower than
Q108: Which of the following are most commonly
Q109: You purchase a call option on pounds
Q111: Assume that the British pound (£) futures
Q112: Margin is used in the forward market
Q113: The annualized forward premium on the euro
Q114: If the spot rate of the euro
Q115: Which of the following is the most