For a European Call Option on a Currency,the Exchange Rate

question 15

Multiple Choice

For a European call option on a currency,the exchange rate is 1.0000,the strike price is 0.9100,the time to maturity is one year,the domestic risk-free rate is 5% per annum,and the foreign risk-free rate is 3% per annum.How low can the option price be without there being an arbitrage opportunity?

• A) 0.1048
• B) 0.0900
• C) 0.1344
• D) 0.1211

Develop critical thinking skills by evaluating the effectiveness of different persuasion tactics.

Understand key social psychology experiments and their implications on human behavior.

Identify and explain common attributional biases and explanatory patterns in social perception.

Comprehend the principles of person perception and the impacts of social categorization.