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

question 46

Multiple Choice

For a $1.50/£ call option with an initial premium of $0.033/£ and a rho value of 0.2,after an increase in the U.S.dollar rate from 8% to 9% - the new ATM optiom premium would be:

• A) $0.037/£.
• B) $1.55/£.
• C) $0.036/£.
• D) $0.035/£.

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Definitions:

Religion

A set of beliefs concerning the cause, nature, and purpose of the universe, often involving ritual observances and a moral code governing the conduct of human affairs.

Psychoneuroimmunology

The study of the interactions among psychological processes, the nervous system, and the immune system, exploring how stress and behavior influence immune function.

Psychological Factors

Mental processes and emotional states that influence an individual's behavior, perceptions, and overall health.

Immune System

The body's defense mechanism against foreign substances, infections, and diseases.