TAILIEUCHUNG - Lecture International finance: An analytical approach (3e): Chapter 10 - Imad A. Moosa

Chapter 10 - Currency options. In this chapter, the learning objectives are: To introduce basic concepts, to outline the differences between OTC and exchange-traded options, to describe option positions, to identify the determinants of option premiums, to describe exotic currency options. | Chapter 10 Currency Options Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a International Finance: An Analytical Approach 3e by Imad A. Moosa Slides prepared by Afaf Moosa Objectives To introduce basic concepts To outline the differences between OTC and exchange-traded options To describe option positions To identify the determinants of option premiums To describe exotic currency options 10- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a International Finance: An Analytical Approach 3e by Imad A. Moosa Slides prepared by Afaf Moosa Definition A currency option is a contract that gives its holder the right to buy or sell, on or by a specified date, an amount of a currency at a predetermined exchange rate 10- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a International Finance: An Analytical Approach 3e by Imad A. Moosa Slides prepared by Afaf Moosa Options writers and holders The writer sells the holder the right to buy or sell the underlying currency The price paid up front is called the premium 10- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a International Finance: An Analytical Approach 3e by Imad A. Moosa Slides prepared by Afaf Moosa Payment and settlement dates The premium payment date is the date on which the premium is due The settlement date is the date on which delivery of the underlying currency is required 10- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a International Finance: An Analytical Approach 3e by Imad A. Moosa Slides prepared by Afaf Moosa Call and put options A call option gives the holder the right to buy the underlying currency A put option gives the holder the right to sell the underlying currency 10- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a International Finance: An Analytical Approach 3e by Imad A. Moosa Slides prepared by Afaf Moosa The mechanics of call and put options on the Australian dollar Call (a) Initial exchange Premium (USD) Put Premium (USD)

• Tài chính doanh nghiệp
• International Finance
• Lecture International finance
• Tài chính quốc tế
• Bài giảng Tài chính quốc tế
• Currency options
• Covered options
• International monetary system
• Exchange rate arrangements
• Eurocurrency market
• International banking
• Internal financing
• International short term financing
• International long term financing
• Foreign bonds
• Foreign direct investment
• International capital budgeting
• International bank loans
• Financial analysis
• Financial management
• Lecture Introduction to finance
• Financial markets
• International trade
• International business firms
• Financial manager
• Bond investment
• Equity investment
• International arbitrage
• Multipoint arbitrage
• Basel accords