- This topic has 1 reply, 2 voices, and was last updated 10 months ago by John Moffat.
- You must be logged in to reply to this topic.
I have a few basic doubts on currency options
1- do we ever have to calculate basis in currency options?
2- when calculating profit on options.. we find the difference between strike price and spot price. Is that correct?
2. Yes, if you are asked to calculate the profit (which needs knowledge of the spot rate on the date of the transaction). Otherwise it is a question of stating the worst outcome if options are used.