A put option is the amount or percentage by which the existing spot rate exceeds the forward rate.

Name: A put option is the amount or percentage by which the existing spot rate exceeds the forward rate.
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Question

Quizplus · Accepted Answer

A put option is an option to sell an underlying asset at a specified price (strike price) on or before a specified date. The amount or percentage by which the existing spot rate is less than the forward rate would determine the value of a put option. Therefore, the statement in the question is false.

A Put Option Is the Amount or Percentage by Which