World Currency Options Flashcards
0
Q
All foreign currency is measured against USD. So if USD is strong =
If USD is weak =
A
Expect a decline in foreign currency
Expect a rise in foreign currency
1
Q
We cannot trade USD in USA?
A
No we cannot trade USD in US
2
Q
Strike moves of decimal
A
2-3-4 to the right
Euro: $1.44. = 144
Peso: $0.07738=77
J.Yen: $0.01081=108
3
Q
Hedging currency:
A
If you make a payment to hedge you’d Buy Calls
If you must accept a payment to hedge you’d Buy Puts
4
Q
When using standardized currency options hedging cannot be:
A
Done in USD, options are not available in USD
