www.cmegroup.com

Q9: Click on "FX" tag and these are foreign exchange derivatives. Go to "Australian Dollar" panel and now check the option series on futures contract 6AZ2 (December 2022). Use screenshots to identify one in-the-money (ITM), one at-the-money (ATM, or closest to be ATM), and one out-of-money (OTM) put options, respectively. Now compare the prices of these three contracts. Which one is the most expensive contract? Can you provide some economic intuition about the price difference among these three contracts? ( 2 marks) Q9: Click on "FX" tag and these are foreign exchange derivatives. Go to "Australian Dollar" panel and now check the option series on futures contract 6AZ2 (December 2022). Use screenshots to identify one in-the-money (ITM), one at-the-money (ATM, or closest to be ATM), and one out-of-money (OTM) put options, respectively. Now compare the prices of these three contracts. Which one is the most expensive contract? Can you provide some economic intuition about the price difference among these three contracts? ( 2 marks)