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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Currency options
“Branches of foreign banks in major financial centres are generally willing to write options against their home currency.
– e.g. Australian banks in Chicago will write options on the Australian dollar.”
Sir I do not understand the why behind foreign banks willingness to write options against their own currency?
Why not? They will understand their own currency and most of their customers are likely to be either based in their home country are will be companies doing dealings with the country.
