Which of the Following Is True

question 42

Multiple Choice

Which of the following is true?

• A) Both call and put options lose more in value from spot rate decreases than they gain in value from spot rate increases of the same magnitude.
• B) Both call and put options gain more in value from spot rate decreases than they lose in value from spot rate increases of the same magnitude.
• C) Call options gain more in value from spot rate decreases than they lose in value from spot rate increases of the same magnitude.
• D) Put options gain more in value from spot rate decreases than they lose in value from spot rate increases of the same magnitude.
• E) None of the above are true.

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Definitions:

Sequencer Program

A program or function in automation that executes a series of steps or instructions in a specific, predefined order.

Sequencer

A control function or device that produces a series of steps or operations, often used in automated processes.