- This topic has 4 replies, 4 voices, and was last updated 10 years ago by .
Viewing 5 posts - 1 through 5 (of 5 total)
Viewing 5 posts - 1 through 5 (of 5 total)
- You must be logged in to reply to this topic.
Interactive BPP books for September 2026 exams, recommended by OpenTuition.
Get discount code >>
Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Put and Call Options
Hi everybody,
Can anyone share how they remember in what scenarios a call option is bought and when a put option is bought?
Many thanks
Dear Robert,
In Examination Question Option to Delay or Expand are called Call Options and Option to Redeploy or Withdraw (meaning terminating the project) are called Put Options.
I do hope your Question is answered.
Mohammed.
If you are referring to foreign exchange or interest rate options, then the rules are all covered in detail in my free lectures.
Hi both, thanks for your replies. Yes john I am indeed asking about foreign exchange and interest rate options. I am aware that these are covered in the lectures. I have watched them and appreciate them fully.
My question was poorly worded. What I’m asking for is a way to remember when to buy a call option and when to buy a put.
I can work it out myself but I wont have the luxury of time in the exam to work it out, thus I was after a way to remember it – a mnemonic for example would be useful.
Thanks for the lectures John
Currency Option
BBPO -Borrower ($) Buy Put Option
PCBC- Pay Currency (not $) Buy Call option
Interest Rate Option
Rising Interest Rate
BBPO -Borrower Buy Put Option
Falling Interest Rate
LBCO-Lenders Buy Call Option
Uttam
