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goblinko [34]
3 years ago
12

"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."
Social Studies
1 answer:
kaheart [24]3 years ago
8 0

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

<u>Explanation</u>:

<u>Currency</u> 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 <u>call option</u> is the contract made between the buyer and seller. This option gives the purchaser a right to buy the bond or shares.

The <u>put option</u> 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.

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