- This topic has 1 reply, 2 voices, and was last updated 6 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
-
Posts
-
Hello sir
why in this question we have a put option, i thought it should be a call option bcoz the co is going to receiveIn future please say which exam the question is from – I cannot remember the name of every question in every exam 🙂
They are receiving CHF and to convert to $’s they will sell CHF’s and buy $’s.
The contract size of the options is quoted in CHF, so because they want to sell CHF they will buy put options – the right to sell CHF.
I do explain this in detail in my free lectures on foreign exchange risk management.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.