The Shorter the Time to the Expiration Date for a Currency

question 27

Multiple Choice

The shorter the time to the expiration date for a currency, the ____ will be the premium of a call option, and the ____ will be the premium of a put option, other things equal.

• A) greater; greater
• B) greater; lower
• C) lower; lower
• D) lower; greater

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Definitions:

Appraising Employee

The process of evaluating an employee's performance, often to inform decisions on promotions, pay raises, and development needs.

Documentation

The materials that provide official information or evidence about a particular subject, process, or product.

Employment Termination

The end of an employee's duration with an employer, which can be voluntary or involuntary.

Interpretation

The act of explaining the meaning of something, often involving translation from one language to another or elucidation of complex ideas.