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sir in this question’s part c) we have been asked to find the results if OTC options are used. But my doubt is how do we know whether to go for Call options or Put options? In exchange traded contracts we would look a the contract currency(CC) and see if its being sold or bought and depending on it buy call or put options. But here we don’t have CC, so then how to know what to do? I know we buy Euros and sell wirtonia dollar receipts, but beyond that predicting whether to buy call or put is flustering me.
Also, in a general case scenario where OTC are involved what is the strategy to immediately and easily identify if we buy/sell futures or buy call/put options?
I am sorry sir if am asking something cues to which you have already given in you video lectures. But honestly speaking sir, i have seen all your lectures once at least. and still somehow struggling with this.
The options offered are in Wirtonia $’s. As you have written we need to sell $’s, and therefore we need put options in $’s.
yes got it sir! my bad! sorry for bothering you with such a silly question.
But just to be double sure, in case of OTC options, the question will somehow hint which currency the options are in, right?
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