Which of the following is true?
A) Both call and put options lose more in value from spot rate decreases than they gain in value from spot rate increases of the same magnitude.
B) Both call and put options gain more in value from spot rate decreases than they lose in value from spot rate increases of the same magnitude.
C) Call options gain more in value from spot rate decreases than they lose in value from spot rate increases of the same magnitude.
D) Put options gain more in value from spot rate decreases than they lose in value from spot rate increases of the same magnitude.
E) None of the above are true.
Correct Answer:
Verified
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