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Closing options – Interest vs Exchange Rates

This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.

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January 26, 2022 at 4:34 pm #647534
ek030217
Participant
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Dear John,
Thank you four wonderful lectures.
Just question about closing option.
In lecture regarding interest it was mentioned that we don’t gave to execute option.
But if understood well at lesson regarding currency exchange optons we have to always execute them and close them (even if there is loss?).
BR,
Arkadiusz
January 27, 2022 at 9:11 am #647575
John Moffat
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No. Options do not have to be exercised (and they will not be exercised if there is a loss. Maybe you are confusing with futures because the futures deal has to be closed off whether there is a gain or a loss.
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