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currency options

Former userFormer user5y ago

[Content removed at user request]

John MoffatJohn MoffatTutor5y ago#1
Why are you attempting question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA approved publishers! Since they are OTC options there are no fixed sized contracts and they can buy options on the exact amount. On 31 December they will not exercise the option because it will be better to convert the receipt at spot. Therefore the receipt will be GBP 1,538,461. However they will still have had to pay the premium of GBP 50,000.
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