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Call Option

Call Option In a call option the holder has the right to buy/call a specific currency at a specific price on a specific maturity date or within a  classified period of time’, However, the holder of the option is under no obligation to buy the currency, Such an...

Currency Options

Currency Options Forward contracts as well as futures (‘(~entrant~ provide a hedge In firms again~t adverse movements in exchange rates. This is the  ajor advantage of such fin  I II”~’ documents. However, at tho.: same  time, these contracts deprive...

Currency Futures

Currency Futures Currency futures are closely related to forward contracts. These are more popularly known, as futures contracts and are traded at  he futures markets, A futures contract is a standardized  agreement to buy or sell a pre specified amount of foreign...

Forward Contracts

Forward Contracts Forward exchange contracts (discussed in the previous chapter) are widely used by business firms to hedge against  volatile adverse exchange rates, Business firms enter in Lo a forward contract (with authorized dealers of the forward exchange...