- This topic has 5 replies, 2 voices, and was last updated 2 years ago by
.
Viewing 6 posts - 1 through 6 (of 6 total)
- Posts
Dear sir,
I don’t understand why in (c), the answer used put options instead of call options.
If the government buy back the franchise, shouldn’t that $7500m be converted into Euro using call options? Since Buryecs is based in Eurozone, and it should be selling Dollars and buy Euro (so call options).
The options are $ options. They are selling $’s and so they are put options in $’s.
The question does not say that.
It says that they are over the counter options in $’s.
I thought the question said “The exercise price quotation is in Wirtonia $ per €1, premium is % of amount hedged, translated at today’s spot rate.”?
Since it’s per €1, is this not a Euro option?
Viewing 6 posts - 1 through 6 (of 6 total)
- You must be logged in to reply to this topic.