Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Buying or Selling the Option contract currency?
- This topic has 4 replies, 2 voices, and was last updated 4 years ago by John Moffat.
- AuthorPosts
- June 18, 2020 at 6:45 pm #574216
Dear John,
Assume Company A local currency is Dollar.
1 – If the contract size currency is Dollar and we receive in Euro, then Call option
2 – If the contract size currency is Euro and we receive in Euro, then Put option
3 – If the contract size currency is Dollar and we pay in Euro, then Put option
4 – If the contract size currency is Euro and we pay in Euro, then Call optionPlease tell me whether i am wrong or no, I really confuse in selecting terms of buying or selling.
Regards
June 18, 2020 at 11:45 pm #574223Dear John,
I assume that I found answer for my question in the link https://opentuition.com/topic/lignum-co-dec-2012-and-buryecs-co-march-june-2017/
Could you please clarify whether the logic explained by you is applicable for all options , i.e. not just for OTC.Thank you
June 19, 2020 at 10:41 am #574242What you have written in your first post is correct.
And yes, the logic is the same for all options.
June 19, 2020 at 1:48 pm #574255Thank you John for response.
You and all opentuition’ lectors are the best!!!June 19, 2020 at 3:18 pm #574270You are welcome, and thank you for your comment 🙂
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