- This topic has 3 replies, 2 voices, and was last updated 2 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for March 2025 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › NUTOURNE CO (DEC 18)
Why they have used put options, if we are receiving foreign currency we will buy home currency that means call options right?
No.
The options are quoted in CHF. Nutourne is receiving CHF and needs to sell the CHF to convert to $’s. Therefore they need options to sell CHF i.e. CHF put options.
Currency options (contract size CHF125,000, exercise price quotation US$ per CHF1,
premium: US cents per CHF1)
Calls Puts
Exercise price December March June December March June
1.0375 0.47 0.50 0.53 0.74 0.79 0.86
Futures and options contracts mature at the month end.
this means 1 chf = 1.0375 exercise price right?
Yes – the quotes are in US$ = CHF1