A Trader Who Is Purchasing a Call Option on Foreign

question 36

True/False

A trader who is purchasing a call option on foreign currency should do so before the domestic interest rate rises.

---

Definitions:

Negative Lead

An electrical connection that serves as the return path for current in a circuit, often marked with a minus (-) symbol or black color in electronics.

DMM

Digital Multimeter, an electronic measuring instrument that combines multiple measurement functions in one unit, such as voltage, current, and resistance.

Voltage Measurement

The process of determining the electrical potential difference between two points in an electric circuit.