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