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OTC Options Contract Currency

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › OTC Options Contract Currency

  • This topic has 3 replies, 2 voices, and was last updated 2 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • June 4, 2023 at 12:50 pm #685976
    simranxdeep
    Participant
    • Topics: 39
    • Replies: 59
    • ☆☆

    In Fondir Co (Dec 22), the premium is quoted as LL / $, and the examiner took $ as their contract currency.
    But in Buryecs Co (Mar/Jun 17), the premium is quoted as $ / Euro, and the examiner has taken $ as contract currency.
    What caused this discrepancy?

    June 4, 2023 at 3:20 pm #685989
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    In Buryecs they are OTC options, so there is no contract size. The question says that the options are in $’s and they are selling dollars.

    June 4, 2023 at 8:13 pm #686001
    simranxdeep
    Participant
    • Topics: 39
    • Replies: 59
    • ☆☆

    Oh okay! The question always specify like this whenever a OTC Option is asked to use right?

    June 5, 2023 at 6:51 am #686018
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    Questions always make it clear if it is an OTC option.

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