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Contained below is a list of possible movements in factors that affect option pricing. Using a to represent an increase in the value of the

Contained below is a list of possible movements in factors that affect option pricing.

Using a to represent an increase in the value of the option and to represent a decrease in the value of an option all else being equal.

Call Option Value

Put Option Value

A decrease in the current spot currency price.

Answer

Answer

A decrease in the exercise price of the option.

Answer

Answer

A decrease in market volatility

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Answer

A decrease in the term to maturity of an American Option

Answer

Answer

An increase in the risk-free rate

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Answer

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