The Premium of a Currency Put Option Should Decrease If

question 36

Multiple Choice

The premium of a currency put option should decrease if:

• A) the volatility of the underlying asset increases.
• B) the spot rate increases.
• C) the volatility of the underlying asset increases and the spot rate increases.
• D) None of these are correct.

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Definitions:

Job Enrichment

The process of making a job more rewarding, challenging, and interesting by adding tasks that increase the job's motivational factors.

Mental Imagery

The process of creating or recreating experiences in the mind, utilizing the senses without direct external input.

Self-reinforcement

The act of rewarding oneself to strengthen the likelihood of a specific behavior occurring in the future.

Job Characteristics Model

A framework suggesting that job satisfaction is increased and positive outcomes are achieved when jobs are designed to be meaningful, involving tasks that require skill variety, task identity, task significance, autonomy, and feedback.