7. An option premium, in most cases, is paid upfront (at the time the option is bought or rather than at the option's expiration. a. True b. False. 8. a. An investor who takes advantage of no risk profit opportunities, usually through pricing differences of the same security, is known as: A short-term investor. b. A speculator. c. A long-term investor. d. An arbitrageur. 9. The forward exchange rate adjustment to a spot exchange rate is based on: a. The time value of money. b. The discount rate. The interest rate differential between the country's term structure of interest rate d. The Federal Reserve. C. 10. In the exchange rate of Canadian / Japanese Yen (CADJPY), it is understood that written o spoken this way means: 1 Japanese Yen is worth "X" amount of Canadian Dollars. a