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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › MJ2017
Hello John…
I would like you to clear my doubt on question 3 Buryecs co. I want to know why the receipt of $7,500 was treated as put options rather than call option.
Thanks.
They are receiving $’s and therefore they will be selling $’s (to buy €’s).
The options are quoted in $’s per €, and therefore they want the option to sell $’s which is a put option.
Have you watched my free lectures on foreign exchange risk management?
Thanks alot John… I watch it …
You are welcome 🙂