For European Currency Options Written on Euro with a Strike

question 73

Multiple Choice

For European currency options written on euro with a strike price in dollars, what of the effect of an increase r_€?

• A)Decrease the value of calls and puts ceteris paribus
• B)Increase the value of calls and puts ceteris paribus
• C)Decrease the value of calls, increase the value of puts ceteris paribus
• D)Increase the value of calls, decrease the value of puts ceteris paribus

---

Definitions:

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, experimentation, and analysis to form and test hypotheses.

Alphabetical Order

A method of sorting items based on the first letter of each item, proceeding letter by letter.

References Section

The part of a document that lists the sources, articles, books, or materials used or referred to, providing credit and context.

Sources Cited

The references or bibliographic details of documents and materials used or referred to in a scholarly work.