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

question 28

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 optiom premium would be:

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

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