For a $150/£ Call Option with an Initial Premium of $0

question 47

Multiple Choice

For a $1.50/£ call option with an initial premium of $0.033/£ and a phi value of -0.2, after an increase in the foreign interest (the pound sterling rate) rate from 8% to 9% - the new option premium would be:

• A) $0.035/£.
• B) $1.48/£.
• C) $0.031/£.
• D) $0.032/£.

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Definitions:

New Southwest

This term often refers to the dynamic and rapidly growing regions of the southwestern United States, characterized by significant demographic changes, economic development, and cultural evolution.

Slave Life

Refers to the conditions and experiences of people who were enslaved, typically characterized by brutal labor, inhumane treatment, and deprivation of freedoms.

Married Woman's Property Act

A series of laws that allowed married women to own, manage, and control their own property and earnings, separate from their husbands.

Mississippi

A U.S. state located in the southern region of the United States, known for its rich cultural history and as a significant site of the Civil Rights Movement.