Question

"The longer the time to the expiration date for a currency, the ____ will be the premium of a call option, and the ____ will be the premium of a put option, other things being equal."

Answer 1

The longer the time to the expiration date for a currency, the greater will be the premium of a call option, and the greater will be the premium of a put option, other things being equal.

Explanation:

Currency is a medium involved in trading the goods and services. The currency is commonly known as money which is issued by the government in the form of coins and paper.

The call option is the contract made between the buyer and seller. This option gives the purchaser a right to buy the bond or shares.

The put option is also a contract involved in trading between the buyer and seller. Here, the option is given to the seller to sell his shares or assets at specified price.