The Premium of a Currency Put Option Should Increase If

question 57

Multiple Choice

The premium of a currency put option should increase if:

• A)the volatility of the underlying asset increases.
• B)the spot rate increases.
• C)A and B.
• D)none of the above

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Definitions:

Major Organic Product

The primary product formed in higher yield during an organic chemical reaction.

Organic Product

A chemical compound of organic nature, typically produced as a result of organic reactions.

Major Organic Product

The primary product formed in the highest yield during a chemical reaction.

Predict

To declare or indicate in advance; especially to foretell on the basis of observation, experience, or scientific reason.