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When calculate profit on option ?

Former userFormer user2y ago

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John MoffatJohn MoffatTutor2y ago#1
It will be easier for me to explain if you refer to specific questions. However with foreign exchange options you either exercise the option at the exercise price, or you discard the option and instead convert at spot. It is only with interest rate options that there is a potential gain on the options, because they are options to buy or sell futures. Have you watched all of my free lectures on this?
John MoffatJohn MoffatTutor2y ago#2
Yes - that is correct. Again, have you watched my free lectures on both foreign exchange risk management and on interest rate risk management?
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