If the Canadian Dollar Became Stronger Relative to the U

question 84

Multiple Choice

If the Canadian dollar became stronger relative to the U.S. dollar, the price of

• A) a call option on the Canadian dollar will increase.
• B) a put option on the Canadian dollar will increase.
• C) a call option on the Canadian dollar will decrease.
• D) both the call and the put options on the Canadian dollar will decrease.

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Definitions:

Domestic Producers

Local or national companies and individuals that produce goods or services within a country's borders.

Tires

Rubber-covered, air-inflated components of a vehicle that provide a flexible cushion between the vehicle and the road, enhancing traction and absorbing shock.

Average Tariff

The average rate of duty or tax levied on imported goods.

Imports

Goods or services bought from foreign countries for domestic consumption or use.