17
Jan
John is a Forex trader. He focuses principally on the Singapore dollar
Question: John is a Forex trader. He focuses principally on…
John is a Forex trader. He focuses principally on the Singapore dollar/ us dollar (S$/$) cross-rate. The current spot rate is S$1.44/$. After considerable study, he concludes that the exchange rate, in the coming 180 days, will probably be about S$1.50/$. He has the following options on the Singapore dollar to choose from:
Option | Strike Price | Premium |
Put on S$ | S$1.4700/$ | S$0.003/$ |
Call on S$ | S$1.4700/$ | S$0.004/$ |
Discuss whether he should buy a Put on S$ or Call on S$, and what would be his net profit if the spot rate at the end of the 180 days is indeed S$1.50/$.
Tags: John is a Forex trader, John is a Forex trader. He, John is a Forex trader. He focuses, John is a Forex trader. He focuses principally, John is a Forex trader. He focuses principally on the, John is a Forex trader. He focuses principally on the Singapore, John is a Forex trader. He focuses principally on the Singapore dollar
Share
Trackbacks and pingbacks
No trackback or pingback available for this article.