(Solved): Question 7 3 pts Which of the following statements is FALSE? Speculators who expect a currency to ap ...

Question 7 3 pts Which of the following statements is FALSE? Speculators who expect a currency to appreciate should purchase call options on that currency.

In-the-money options are more expensive, the less in-the-money they are. A put option on

with a strike price of

is the same thing as a call option on

with a strike price of

. For American options, the intrinsic value is the difference between the time value and the market value. American call and put premiums should be at least as large as their intrinsic value.