Professional Documents
Culture Documents
5
Currency Derivatives
C5 - 2
Forward Market
C5 - 3
Forward Market
C5 - 4
Forward Market
C5 - 6
Currency Futures Market
C5 - 10
Currency Futures Market
C5 - 12
Currency Futures Market
C5 - 13
Currency Futures Market
C5 - 15
Currency Futures Market
C5 - 17
Currency Options Market
C5 - 21
Currency Call Options
C5 - 24
Currency Put Options
C5 - 29
Contingency Graphs for Currency Options
For Buyer of £ Put Option For Seller of £ Put Option
Strike price = $1.50 Strike price = $1.50
Premium = $ .03 Premium = $ .03
Net Profit Net Profit
per Unit per Unit
+$.04 +$.04
Future
+$.02 Spot +$.02
Rate
0 0
$1.46 $1.50 $1.54 $1.46 $1.50 $1.54
- $.02 - $.02 Future
Spot
- $.04 - $.04 Rate
C5 - 30
European Currency Options