ok, so can I kindly get the best approach to tackle OTC options? because I don’t understand how they initially started by finding the receipt using the swap arrangement when the receipt was already stated in the question?
for currency options I first of all find my number of contracts, then I find the premium amount and convert it at spot, and find the under/overhedge and convert it using forward rate, then I then use the information to find my receipt or payment. The approach of this question is not quiet clear to me.