Kenduri june 2013

This topic has 3 replies, 2 voices, and was last updated 8 years ago by John Moffat.

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April 25, 2018 at 12:15 pm #448783
hj
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Sir I have a doubt in part a currency options when converting the premium to pounds why are we not taking the higher rate of 1.5962 as we are selling dollars ( so as bank is always in profit) we will take the rate which gives us less no of pounds??
I have the same question about the forwards rate taken?
thanks alot
April 25, 2018 at 5:52 pm #448831
John Moffat
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But the premium is always a payment 🙂
April 25, 2018 at 6:39 pm #448843
hj
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sir I dont get it the home currency is pounds so while converting wont we sell the dollars to exchange them to pounds in order to pay the premium??
April 26, 2018 at 4:52 am #448873
John Moffat
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But the premium is calculated in $’s and so we need to buy $’s in oder to pay the premium.
Have you watched the free lectures on this?
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