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Viewing 5 posts - 1 through 5 (of 5 total)
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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Buying or Selling the Option contract currency?
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 option
Please tell me whether i am wrong or no, I really confuse in selecting terms of buying or selling.
Regards
Dear 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
What you have written in your first post is correct.
And yes, the logic is the same for all options.
Thank you John for response.
You and all opentuition’ lectors are the best!!!
You are welcome, and thank you for your comment 🙂