Hi John, I'm struggling to get my head around whether or not we need a put option or call option when looking at forex hedging.
My thoughts were that if the company was due to receive money in the future we'd purchase a put option, on the flip side, if the company was expected to make a payment in the future it would be a call option.
Please can you help.
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Put Option vs. Call Option
6y ago#1It depends in which currency the options are quoted.
It is all explained in detail in my free lectures on foreign exchange risk management.
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