Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) General Knowledge Economy External Sector and Currency Exchange rate
Which of the following affect the pricing of a currency option?
(A) Spot exchange rate
(B) Exercise rate
(C) Foreign risk-free rate of return
(D) Domestic risk-adjusted rate
(E) Time to expiration
Choose the correct answer from the options given below:
1
(B), (C), (D), (E) Only
2
(A), (C), (D), (E) Only
3
(A), (B), (C), (E) Only
4
(A), (B), (D), (E) Only