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Forums › CIMA Forums › Foreign exchange risk management- confuse
Hi tutor.
I was confure on the put option and call option.
Here are my note :
1. Pay to oversea -> buy Put option -> Sell off interest -> Oversea Rate choose most Lower -> Borrow local / Deposit in oversea (- premium amount)
2. Received from oversea-> buy Call option -> Buy interest -> Oversea Rate choose most higher ->Borrow Oversea/ Deposit in local ( + discount amount)
its too difficult for me to imagine how was the put and call option go.
May I know my note is accurate?
