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Hello professor john
In question lirio in bpp kit regarding currency options I want to know why there was a call option on the euro receipt for the US company when the answer should be put optionIn future you must ask in the Ask the Tutor Forum if you want me to answer – this forum is for students to help each other.
They are receiving €’s and therefore want the option to sell €’s and buy $’s.
The option contract size is quoted in $’s, and since they need to buy $’s they will use call options because they give them the right to buy $’s at a fixed rate.
I do suggest that you watch my free lectures on this 🙂
Hello professor john sorry for the late reply as I have been away for the last few days and I have been working on my revision thank you so much for your support and yes professor I will post in the proper forum all my queries
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