​Which of the Following Is Correct

question 87

Multiple Choice

​Which of the following is correct?

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

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