Question
Maureen McBride has been asked by the management of Dormant Corporation to prepare a cheat sheet for their currency salespeople to use when they sell
Maureen McBride has been asked by the management of Dormant Corporation to prepare a cheat sheet for their currency salespeople to use when they sell put and call options. Contained below is a list of possible movements in factors that effect 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 An increase in the current spot currency price. Answer Answer A increase in the exercise price of the option. Answer Answer A decrease in market volatility Answer Answer A decrease in the term to maturity of an American Option Answer Answer An increase in the risk free rate. Answer Answer
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