If the underlying currency is expected to depreciate:
A) a speculator will go long a call option or long a put option
B) a speculator will go long a call option or short a put option
C) a speculator will go short a call option or long a put option
D) a speculator will go short a call option or short a put option

Question

Quizplus · Accepted Answer

When expecting a currency to depreciate, a speculator would likely go short on a call option, betting the currency won't rise above a certain level, or go long on a put option, betting the currency will fall below a certain level, both strategies aiming to profit from the anticipated depreciation.

If the Underlying Currency Is Expected to Depreciate