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please help true or false ? a) The value of any option that is currently in-the-money (ITM) is made up entirely of time value. b)
please help true or false ? a) The value of any option that is currently in-the-money (ITM) is made up entirely of time value. b) The sensitivity of the option premium to a small change in the spot exchange rate is called the gamma. c) If the rho of the specific option is known, it is easy to determine how the option's value will change as the spot rate changes. d) A swap agreement may involve currencies or interest rates, but never both. e) Interest rate futures are relatively unpopular among financial managers because of their relative illiquidity and their difficulty of use. f) The real exposure of an interest or currency swap is not the total notional principal, but the mark-to-market values of differentials in interest or currency interest payments since the inception of the swap agreement.
please help
true or false ?
a) The value of any option that is currently in-the-money (ITM) is made up entirely of time value.
b) The sensitivity of the option premium to a small change in the spot exchange rate is called the gamma.
c) If the rho of the specific option is known, it is easy to determine how the option's value will change as the spot rate changes.
d) A swap agreement may involve currencies or interest rates, but never both.
e) Interest rate futures are relatively unpopular among financial managers because of their relative illiquidity and their difficulty of use.
f) The real exposure of an interest or currency swap is not the total notional principal, but the mark-to-market values of differentials in interest or currency interest payments since the inception of the swap agreement.
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