Currency options

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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September 6, 2017 at 9:45 am #405928
hlkhoo
Member
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How to know which exercise price to choose for currency option?
For example:
Spot : 1.5938 – 1.5962
3-mth forward : 1.5996 – 1.6033
Option exercise price 1.60 and 1.62
Which exetcise price to choose?
Thank you.
September 6, 2017 at 10:31 am #405967
John Moffat
Keymaster
- Topics: 57
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There is no ‘best’ exercise price (you can get a ‘better’ limit but you pay more for it 🙂 )
In the exam you should show the effect of each of the strike prices.
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