Question: Question 10 (4 points) TRUE or FALSE? (No explanation required, just write true or false) __________ Put options with lower strike price are cheaper (have

Question 10 (4 points) TRUE or FALSE? (No explanation required, just write true or false)

__________ Put options with lower strike price are cheaper (have lower option premium).

__________ The bid-ask spread for forward rates is larger than for spot rates.

__________ If UIRP/UH holds, hedging has a premium.

__________ Per CIRP, the forward premium is approx. equal to the interest rate differential between two currencies.

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