Question: 1. Currency Options. Differentiate between a currency call option and a currency put option. 2. Currency Call Option Premiums. List the factors that affect currency
1. Currency Options. Differentiate between a currency call option and a currency put option. 2. Currency Call Option Premiums. List the factors that affect currency call option premiums and briefly explain the relationship that exists for each. Do you think an at-the-money call option in euros has a higher or lower premium than an at-the-money call option in Mexican pesos (assuming the expiration date and the total dollar value represented by each option are the same for both options)? 3. Currency Put Option Premiums. List the factors that affect currency put options and briefly explain the relationship that exists for each
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