Which of the Following Statements Is NOT True About Currency

question 24

Multiple Choice

Which of the following statements is NOT true about currency option pricing sensitivities?

• A) The higher the delta, the more likely the option will move in-the-money.
• B) Premiums rise with increases in volatility.
• C) Premiums are relatively insensitive during the first days.
• D) Increases in domestic interest rates cause decreasing call option premiums.

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Definitions:

Maxilla

The paired upper jawbones that form the foundations of the middle face, supporting the upper teeth and playing key roles in breathing, eating, and speaking.

Cleft Lip

A congenital facial defect that occurs when the upper lip does not form completely, leading to a gap or split.

Mandible

The lower jaw or jawbone, the largest and strongest bone of the face, which holds the lower teeth in place and moves during chewing.

Freely Moveable Joint

Joints that allow extensive movement between bones, including hinge, ball-and-socket, and pivot types, enabling activities such as walking, grasping, and turning.