Question: How would your answer (to the previous question) change if instead of having a strike equal to the spot and 0 interest rate, we assume

  1. How would your answer (to the previous question) change if instead of having a strike equal to the spot and 0 interest rate, we assume an interest rate of "r" and we set the strike to the current spot times exp(r).

    answer does not change

    answer depends on the spot price

    answer depends on the interest rate

    answer depends both on the spot and the interest rate

    How would your answer (to the previous question) change if instead of having a Call option we have a Put option.

    answer does not change

    answer depends on the spot price

    answer depends on the interest rate

    answer depends both on the spot and the interest rate

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