If you expect the US dollar to appreciate, you could speculate by ____ pound call options or ____ pound put options.
A) purchasing; selling
B) purchasing; purchasing
C) selling; selling
D) selling; purchasing

Question

Quizplus · Accepted Answer

If you expect the US dollar to appreciate, you would want to buy pound call options (A) or sell pound put options (A). This is because if the US dollar appreciates, the pound will depreciate, which would make the call options more valuable and the put options less valuable.

If You Expect the US Dollar to Appreciate, You Could