Question
The premium of a currency put option should increase if: the volatility of the underlying asset increases. the spot rate increases. the volatility of the
The premium of a currency put option should increase if: the volatility of the underlying asset increases. the spot rate increases. the volatility of the underlying asset increases AND the spot rate increases.
a. The spot rate Increases.
b.The volatility in underlying asset increases.
c. The volatility in underlying asset increase AND the Spot Rate increases.
d. None of the Above
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Financial Risk Manager Handbook
Authors: Philippe Jorion, Global Association Of Risk Professionals
5th Edition
0470479612, 978-0470479612
