How is the fair value of a foreign currency option calculated?
A. by using the Box-Jenkins technique
B. using the principles of the Black-Scholes pricing model
C. through an arms-length transaction
D. using quotes given daily in the Wall Street Journal
Answer:B
How is the fair value of a foreign currency option calculated?
A. by using the Box-Jenkins technique B. using the principles of the Black-Scholes pricing model C. through an arms-length transaction D. using quotes given daily in the Wall Street Journal