• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2025 exams.
Get your discount code >>

melanie0412

Profile picture of melanie0412
Active 8 years ago
  • Topics: 1
  • Replies: 2
  • ☆
  • Profile
  • Forums
  • Topics Started
  • Replies Created
  • Engagements

Forum Replies Created

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • November 29, 2016 at 9:19 am #352328
    mysterymelanie0412
    Member
    • Topics: 1
    • Replies: 2
    • ☆

    Notwithstanding € depreciating/appreciating, we will need to sell € and buy $ since we are receiving €? Is that correct? Since if € appreciates, we do not need to exercise the option. If we reverse the scenario, we need to make a payment in €, we will buy € and sell $. As such, it will be a put option – the right but not the obligation to sell $? I went throught the free lectures but i cant seems to catch the principle behind currency options.

    November 29, 2016 at 1:42 am #352270
    mysterymelanie0412
    Member
    • Topics: 1
    • Replies: 2
    • ☆

    I would like to ask why is it a call option instead of put option for Q1. The currency option quoted is: contract size $125,000, exercise price € per $, premium price € per dollar. If the option is quoted in $, hence it is the right but not the obligation to buy or sell $. If we anticipate € depreciating since question states a permanent shift (meaning $ will appreciates). We will receive less $ after converting the € reciept. Is my understanding correct as of this point? I cant seems to grasp the logic of call/put options. If you could please explain the logic to derive a call option?

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Sid24012003 on MA Chapter 5 Questions Ordering and Accounting for Inventory
  • John Moffat on PM Chapter 5 Questions Throughput accounting
  • John Moffat on Inventory Control (part 3) – Economic Batch Quantity – ACCA Management Accounting (MA)
  • Dzakpa on PM Chapter 5 Questions Throughput accounting
  • Markie on Inventory Control (part 3) – Economic Batch Quantity – ACCA Management Accounting (MA)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in