Suppose the size of a contract on CAD currency at the Philadelphia Option Exchange is $60,000 CAD and a September call option at x= 0.7400 trades for 0.01 USD/CAD

if you buy a call option and you want it to increase in value you hope:

a) Currency volatility goes up and Canadian dollar interest rates go down

b) The Canadian dollar goes up in value and Canadian dollar interest rates go up.

c) The USD goes up in value and currency volatility decreases.

d) the USD goes up in value and the US interest rates fall.