Hello Sir!
Please confirm if following mentioned text is correct :-
In case of currency options ofcourse there is no concept of "Basis" (in Future contracts).
So if there is no currency option contract for the "date of Forex receipt/payment" , we have to consider the "exercise price" of the option contract which is immediately next to the forex receipt/payment date.
And we can consider that "exercise price" less premium amount to calculate the final inflow/ outflow of domestic currency. There is no need to adjust the exercise price with "basis".
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Currency Options
5y ago#1You are correct in writing that there is no basis involved with options.
If the option is exercised then we convert at the exercise price.
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