All 2016-FRR Test Inside GARP Questions

As the dollar appreciates relative to the pound, the right to buy dollars at a fixed pound exchange rate decreases.

As the dollar appreciates relative to the pound, the right to buy dollars at a fixed pound exchange rate increases.

As the dollar depreciates relative to the pound, the right to buy dollars at a fixed pound exchange rate increases.

As the dollar appreciates relative to the pound, the right to sell dollars at a fixed pound exchange rate increases.

Loan interest = Risk-free rate - Probability of default x Loss given default + Spread

Loan interest = Risk-free rate + Probability of default x Loss given default + Spread

Loan interest = Risk-free rate - Probability of default x Loss given default - Spread

Loan interest = Risk-free rate + Probability of default x Loss given default - Spread

An American call option gives the buyer of that call option the right to buy the underlying instrument on any date up to and including the expiry date.

An American call option gives the buyer of that call option the right to sell the underlying instrument on any date up to and including the expiry date.

An American call option gives the buyer of that call option the right to buy the underlying instrument on the expiry date.

An American call option gives the buyer of that call option the right to sell the underlying instrument on the expiry date.

JPY, EUR, USD

USD, EUR, JPY

USD, JPY, EUR

EUR, USD, JPY