1- Which of the statements is true?
a- An increase in the spot rate will cause an increase in the price of a put option.
b- An increase in the strike price will cause an increase in the price of a call option.
c- An increase in the foreign interest rate will cause an increase in the price of
d- Two of the above
e- None of the above
2- Which of the following is true?
a- A forward is the same as a short call and a long put.
b- A call option on one currency is the same as a put option on the other currency.
c- Options on spot and futures are essentially the same.
d- B and c only are true.
e- A, b, c are true.