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Failed to understand Bpp kit Q. no. 243 .What is a put option and what is a splot option ?
A put option is the right to sell the currency at a fixed rate (but not the obligation – you exercise the option if it is in your favour, you do not exercise it if it is not in your favour).
There is no such term as a ‘splot option’!!!
A US dollar put option is the right to sell US dollars at a fixed rate.
A Splot put option is the right to sell Splots at a fixed rate.(The company is based in Farland which has the Splot as its currency!!!)
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