Which of the Following Is Correct

question 13

Multiple Choice

Which of the following is correct?

• A) The longer the time to maturity, the less the value of a currency call option, other things equal.
• B) The longer the time to maturity, the less the value of a currency put option, other things equal.
• C) The higher the spot rate relative to the exercise price, the greater the value of a currency put option, other things equal.
• D) The lower the exercise price relative to the spot rate, the greater the value of a currency call option, other things equal.

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Definitions:

Marston Moor

A decisive battle of the English Civil War fought on 2 July 1644, where the Parliamentarians defeated the Royalists, greatly influencing the war's outcome.

Northern England

A geographical region of England, marked by its distinct cultural, historical, and economic identities, and typically considered to include areas such as Yorkshire, the North East, and the North West.

Test Act

Legislation passed in 1673 in England, requiring all civil and military officials to profess the Protestant faith, effectively excluding Catholics from office.

Civil Offices

Positions within a government's administrative framework, excluding military or judicial roles, typically filled by civil servants.