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:

Electronic Correspondence

Electronic correspondence refers to communication through digital means such as email, instant messaging, or social media platforms.

Social Intelligence

The ability to effectively navigate and negotiate complex social relationships and environments.

Common Goal

An objective or target shared by a group or community, fostering collaboration and unity among its members.

Free Riding

describes a scenario where individuals or entities take advantage of the benefits offered by a collective effort without contributing equitably to the effort.