The premium on a put option is primarily a function of the difference in spot price relative to the strike price X, the time until maturity T, and the volatility of the currency o. P-(S-X, T, ) For each characteristic of a put option, use the table to indicate whether that would lead to a higher put option premium or a lower pot option premium (all else equel). Characteristic Higher Put Option Premium Lower Put Option Premium A lower spot price relative to the strike price A longer time before expiration A higher level of volatility for the currency amount of dollars it will When using a put option to hedge receivables in an international currency, a U.S. based MNC can lock in the receive