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Given the following information on a U.S. exchange: Todays Spot: EUR/USD 1.19 Spot rate (at expiry) 1.23 EUR/USD Monthly Deliverable Call Options Time to expiry:
- Given the following information on a U.S. exchange: Todays Spot: EUR/USD 1.19 Spot rate (at expiry) 1.23 EUR/USD Monthly Deliverable Call Options Time to expiry: 1 month Contract size 125,000 Euro Strike 1.1900 Option Premium 0.89c US What is the percentage return to a speculator from purchasing this option and holding it until maturity?
- Given the following spot quotations: EUR/USD 1.1760 / 1.1781 USD/CHF 0.9144 / 0.9158 Create a cross rate between the EUR and the CHF. Express it as a dealer offering buy and sell prices for the EUR in direct form.
- Given the following information on an Indian exchange: Todays Spot: USD/INR 74.28 Spot rate (at expiry): 75.20 USD/INR Monthly Deliverable Put Options Time to expiry: 1 month Contract size: 1000 USD Strike: 73.75 Option Premium: 235 paise (that is 2.35 INR) What is the net INR return to a speculator from purchasing this option and holding it until maturity?
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Managing Currency Options In Financial Institutions
Authors: Yat-Fai Lam, Kin-Keung Lai
1st Edition
1138778052, 978-1138778054
