- This topic has 1 reply, 2 voices, and was last updated 4 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
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 › Currency Options
Hello Sir!
Please confirm if following mentioned text is correct :-
In case of currency options ofcourse there is no concept of “Basis” (in Future contracts).
So if there is no currency option contract for the “date of Forex receipt/payment” , we have to consider the “exercise price” of the option contract which is immediately next to the forex receipt/payment date.
And we can consider that “exercise price” less premium amount to calculate the final inflow/ outflow of domestic currency. There is no need to adjust the exercise price with “basis”.
You are correct in writing that there is no basis involved with options.
If the option is exercised then we convert at the exercise price.