True regarding options

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1. Which of the following is not true regarding options?

a. The writer of a call option has the obligation to sell the currency to the buyer if the option if exercised.

b. The buyer of a put option has the right to sell the currency at the strike price.

c. The writer of a put option has the obligation to sell the currency to the buyer if the option is exercised.

d. The buyer of a call option has the right to buy the currency at the strike price

2. What is the present value of $12,700 to be received 4 years from today if the discount rate is 7 percent?

$10,366.98

$10,888.20

$9,688.77

$7,620.00

$9,650.96

Reference no: EM131967643

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