Which of the following statements is NOT true about currency option pricing sensitivities?
A) The higher the delta, the more likely the option will move in-the-money.
B) Premiums rise with increases in volatility.
C) Premiums are relatively insensitive during the first days.
D) Increases in domestic interest rates cause decreasing call option premiums.

Question

Quizplus · Accepted Answer

Increases in domestic interest rates typically cause increasing call option premiums due to the potential for higher returns from the underlying asset.

Which of the Following Statements Is NOT True About Currency