In the CURRENCY TRADING Section of the Wall Street Journal,the

question 9

Multiple Choice

In the CURRENCY TRADING section of The Wall Street Journal,the following appeared under the heading OPTIONS: Philadelphia Exchange

Which combination of the following statements are true? (i) - The time values of the 68 May and 69 May put options are respectively .30 cents and .50 cents.
(ii) - The 68 May put option has a lower time value (price) than the 69 May put option.
(iii) - If everything else is kept constant,the spot price and the put premium are inversely related.
(iv) - The time values of the 68 May and 69 May put options are,respectively,1.63 cents and 0.83 cents.
(v) - If everything else is kept constant,the strike price and the put premium are inversely related.

• A)(i), (ii), and (iii)
• B)(ii), (iii), and (iv)
• C)(iii) and (iv)
• D)( iv) and (v)

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Definitions:

Government Expenditures

Spending by the government sector including spending on goods and services, public works, and social programs.

Macroeconomic Policy

Strategies implemented by governments to influence the economy's overall performance by adjusting economic factors like interest rates, taxation, and public spending.

Monetary Policy

The setting of the money supply by policymakers in the central bank.

Fiscal Policy

The setting of the level of government spending and taxation by government policymakers