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MJ2017

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › MJ2017

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 19, 2018 at 1:00 pm #485229
    Avataralpha2006
    Participant
    • Topics: 19
    • Replies: 18
    • ☆

    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.

    November 19, 2018 at 2:20 pm #485238
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54843
    • ☆☆☆☆☆

    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?

    November 19, 2018 at 3:49 pm #485247
    Avataralpha2006
    Participant
    • Topics: 19
    • Replies: 18
    • ☆

    Thanks alot John… I watch it …

    November 20, 2018 at 7:23 am #485289
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54843
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘MJ2017’ is closed to new replies.

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