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NUTOURNE CO (DEC 18)

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

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May 30, 2022 at 6:44 am #656821
Frooti
- Topics: 61
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Why they have used put options, if we are receiving foreign currency we will buy home currency that means call options right?
May 30, 2022 at 8:48 am #656828
John Moffat
Keymaster
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No.

The options are quoted in CHF. Nutourne is receiving CHF and needs to sell the CHF to convert to $’s. Therefore they need options to sell CHF i.e. CHF put options.
May 30, 2022 at 12:38 pm #656836
Frooti
- Topics: 61
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Currency options (contract size CHF125,000, exercise price quotation US$ per CHF1,
premium: US cents per CHF1)
Calls Puts
Exercise price December March June December March June
1.0375 0.47 0.50 0.53 0.74 0.79 0.86
Futures and options contracts mature at the month end.

this means 1 chf = 1.0375 exercise price right?
May 30, 2022 at 4:41 pm #656879
John Moffat
Keymaster
- Topics: 57
- Replies: 49902
Yes – the quotes are in US$ = CHF1
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