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Options

This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.

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November 17, 2016 at 7:39 pm #349671
osama94
Member
- Topics: 21
- Replies: 15
Hello sir,
I am afraid I do not understand options. I know they are a contract to buy or sell but have the option to go ahead or not.
If the interest rate is in our favour, do we pay a premium (if we exercise the option)?
Please if you can, just give me bullet points.
November 18, 2016 at 5:26 am #349705
John Moffat
Keymaster
- Topics: 57
- Replies: 54835
Have you watched my lectures? I go through options in detail in the lectures on foreign exchange risk management, and on interest rate risk management.
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