78.The lower bound of a put option premium is the greater of zero and the difference between the exercise price and the spot rate; the upper bound of a currency put option is the exercise price.

True False

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Q 77

77.The lower bound of the call option premium is the greater of zero and the difference between the spot rate and the exercise price; the upper bound of a currency call option is the spot rate.

Q 79

79.Due to put-call parity, we can use the same formula to price calls and puts.

Q 80

80.If an actual put option premium is less than what is suggested by the put-call parity relationship, arbitrage can be conducted.