The choice of a basic versus a conditional option depends on expectations about the currency's exchange rate over the period of concern.

Name: The choice of a basic versus a conditional option depends on expectations about the currency's exchange rate over the period of concern.
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Question

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The statement is true. Basic options may be preferable if there is little expected movement in the exchange rate, while conditional options may be preferred if there is a greater degree of uncertainty or expected volatility.

The Choice of a Basic Versus a Conditional Option Depends