The Lower Bound of the Call Option Premium Is the Greater

question 21

True/False

The lower bound of the call option premium is the greater of zero and the difference between the spot rate and the exercise price; the upper bound of a currency call option is the spot rate.

---

Definitions:

Parental Neglect

A form of child abuse where a parent or guardian fails to provide the basic needs or appropriate care for their child.

Early

Occurring or done before the usual or expected time, typically referring to a point in time closer to the beginning of a period or sequence.

Gender Typing

The process by which children acquire the values, motives, and behaviors considered appropriate for their gender in their culture.

Masculine

Qualities, attributes, or roles traditionally associated with men and boys, often contrasted with feminine traits.