Gains and premiums of options are calculated on ticks and tick value and ??
Can u please explain it with example ?
Ask the Tutor ACCA AFM
Gain and premium calculation
11y ago#1You do not have to use ticks - I never bother with them (and they are for futures. The only reason that they are relevant for interest rate options also is because the options are options to buy or sell futures).
However they are explained in full in the free lectures on foreign exchange risk management and interest rate risk management (together with examples!).
I cannot type out the lecture again here.
Sign in to reply to this topic.