How to know which exercise price to choose for currency option?
For example:
Spot : 1.5938 - 1.5962
3-mth forward : 1.5996 - 1.6033
Option exercise price 1.60 and 1.62
Which exetcise price to choose?
Thank you.
Ask the Tutor ACCA AFM
Currency options
8y ago#1There is no 'best' exercise price (you can get a 'better' limit but you pay more for it :-) )
In the exam you should show the effect of each of the strike prices.
This topic is locked — no new replies.