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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Definitions:

Concept of Density

A measure of mass per unit volume of a substance, often used in physics and chemistry to characterize materials.

Concept of Crowding

The psychological feeling of discomfort or stress due to being in overly populated or cramped spaces.

Conference Room Table

A piece of furniture in an office setting designed to accommodate multiple participants during meetings and discussions.

Physical Environment

The tangible, concrete surroundings in which an organism or group operates, including both natural and built structures.