Question
A client entered into a cash settled AUDUSD strangle option strategy for a notional of USD 500,000 with strikes 0.7050 and 0.7450 for a total
A client entered into a cash settled AUDUSD strangle option strategy for a notional of USD 500,000 with strikes 0.7050 and 0.7450 for a total cost of USD 10,000.
Where should spot fix if the client wants to earn USD 5,000 net of the premium he paid for the option?
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Step: 1
The client wants to earn a net profit of 5000 which means that the total profit must be 15000 This m...
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
