- This topic has 1 reply, 2 voices, and was last updated 8 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- The topic ‘contract currency’ is closed to new replies.
OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › contract currency
hi
if the contract size is denoted in € , does it mean its an european option?
and if its in $, does it mean its an american option?
No.
The words ‘european option’ and ‘american option’ have nothing to do with the currency of the options.
They simply refer to the style of the option – i.e. whether they can only be exercised on the last day of the relevant month (european) or at any time up to the last day of the relevant month (american).
I do suggest that you watch my free lectures on foreign exchange risk management.