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Hello to you all.Please i need help with regard to pull and call options.I am confused when it comes to identifying situations where a pull option needs to be bought and sold as a call option on a given future date and vice versa.
thanksGood day.
It’s PUT and CALL, not PULL!
Put option is the option (you get the possibility) to SELL something (you put it to the market and someone can buy it).
Call option – you can buy something (you call the market for something).When you get the problem, say “you are in UK will get the $ payment in, say, 3 monthes”, this means that you use Pounds (since you are in UK), but you will get US Dollars, so you will need to sell the $ you will get in 3 months. But since you are in UK, the basic commodity (or however it’s called) is Pounds – your local currency, so in UK put option is to sell pounds, call option – to buy pounds. So you will need to buy pounds (you sell $ = you buy pounds), which means you need a call option.
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