In the CURRENCY TRADING section of The Wall Street Journal, the following appeared under the heading OPTIONS: Which combination of the following statements are true? (i) - The time values of the 68 May and 69 May put options are respectively .30 cents and .50 cents.
(ii) - The 68 May put option has a lower time value (price) than the 69 May put option.
(iii) - If everything else is kept constant, the spot price and the put premium are inversely related.
(iv) - The time values of the 68 May and 69 May put options are, respectively, 1.63 cents and 0.83 cents.
(v) - If everything else is kept constant, the strike price and the put premium are inversely related.
A)(i), (ii), and (iii)
B)(ii), (iii), and (iv)
C)(iii) and (iv)
D)(iv) and (v)

Question

In the CURRENCY TRADING section of The Wall Street Journal, the following appeared under the heading OPTIONS:  Which combination of the following statements are true? (i) - The time values of the 68 May and 69 May put options are respectively .30 cents and .50 cents.
(ii) - The 68 May put option has a lower time value (price) than the 69 May put option.
(iii) - If everything else is kept constant, the spot price and the put premium are inversely related.
(iv) - The time values of the 68 May and 69 May put options are, respectively, 1.63 cents and 0.83 cents.
(v) - If everything else is kept constant, the strike price and the put premium are inversely related.
A)(i), (ii), and (iii) 
B)(ii), (iii), and (iv) 
C)(iii) and (iv) 
D)(iv) and (v)

Quizplus · Accepted Answer

The Answer of In the CURRENCY TRADING section of The Wall Street Journal, the following appeared under the heading OPTIONS:  Which combination of the following statements are true? (i) - The time values of the 68 May and 69 May put options are respectively .30 cents and .50 cents.
(ii) - The 68 May put option has a lower time value (price) than the 69 May put option.
(iii) - If everything else is kept constant, the spot price and the put premium are inversely related.
(iv) - The time values of the 68 May and 69 May put options are, respectively, 1.63 cents and 0.83 cents.
(v) - If everything else is kept constant, the strike price and the put premium are inversely related.
A)(i), (ii), and (iii) 
B)(ii), (iii), and (iv) 
C)(iii) and (iv) 
D)(iv) and (v)

In the CURRENCY TRADING Section of the Wall Street Journal