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Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Currency Exchange
please need your help in calculating Premium and Under/Overhedge in currency option
when you buy call option Premium exchange spot rate – buy rate
underhedge Fwd rate – buy rate
overhedge Fwd Rate – Sell rate
Sell put option Premium Exchange Spot rate – sell rate
Underhedge Fwd rate – sell rate
overhege fwd rate – buy rate
Please need your assistance to help know the rate to use at every point in time
You need to watch my free lectures on options 🙂