Which of the Following Would Not Cause the Supply of U.S

question 44

Multiple Choice

Which of the following would not cause the supply of U.S. dollars in the forex market to increase?

• A) U.S. interest rates are low relative to foreign interest rates.
• B) Investors' confidence in foreign economies increases.
• C) U.S. consumers prefer foreign goods to U.S. goods.
• D) Investors' confidence in U.S. investments increases.

Understand the fundamental concepts of options including call and put options.

Comprehend the variables affecting option pricing and their impacts.

Describe the Black-Scholes call option pricing formula and its variables.

Explain the concept of put-call parity in option pricing.