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Buying or Selling the Option contract currency?

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 5 years ago by John Moffat.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • June 18, 2020 at 6:45 pm #574216
    gbay
    Participant
    • Topics: 14
    • Replies: 18
    • ☆

    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

    June 18, 2020 at 11:45 pm #574223
    gbay
    Participant
    • Topics: 14
    • Replies: 18
    • ☆

    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

    June 19, 2020 at 10:41 am #574242
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    What 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 #574255
    gbay
    Participant
    • Topics: 14
    • Replies: 18
    • ☆

    Thank you John for response.
    You and all opentuition’ lectors are the best!!!

    June 19, 2020 at 3:18 pm #574270
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    You are welcome, and thank you for your comment 🙂

  • Author
    Posts
Viewing 5 posts - 1 through 5 (of 5 total)
  • The topic ‘Buying or Selling the Option contract currency?’ is closed to new replies.

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