Currency Options Future Assignment & Homework Help Online
Are you struggling with Currency Options and Future Assignment? Do you need Currency Options and Future Assignment Help? Currency Options and Future Homework Help?
Our team of Finance experts equipped with PhDs and Masters can help on a wide range of Finance assignment topics.
Currency options are derivative contracts where foreign currency is the underlying asset. Currency options are also known as forex options or fx options. The contract is between a buyer and a seller. The contract gives the buyer the right (and not the obligation) to buy or sell the underlying foreign currency at a specified price on an agreed upon date in future.
Currency options are of two types: Call options and put options. The buyer of a call option has the right to buy the underlying currency at an agreed upon price at a future date.
A put option provides the buyer the right to sell the underlying asset.
For exercising the right to trade the underlying asset, the seller of the option is a paid a price known as a premium. The price that is specified for either buying or selling at the future date is known as the strike price.
When an investor believes that the US dollar will appreciate against the Euro, he purchases a currency call option on USD/EUR. If the value of the US dollar actually increases against the Euro, the buyer can exercise his right to earn a profit.
Benefits:
• They are extremely useful for hedging against the adverse movements of exchange rates.
• These are the only options which are traded 24 hours a day.
Risks:
• Currency options change value very frequently, since they are tied to the volatile forex market.• The small outlay that is paid as the initial margin may prevent an investor from estimating the actual losses that he may suffer due to adverse market conditions.
Want to know how to proceed?
Fill up the assignment help request form on the right or drop us an email at support@helpwithassignment.com. Feel free to contact our customer support on the company 24/7 Live chat or call us on 312-224-1615.
HelpWithAssignment provides timely help at affordable charges with detailed answers to your assignments, homework, research paper writing, research critique, case studies or term papers so that you get to understand your assignments better apart from having the answers. The team has helped a number of students pursuing education through regular and online universities, institutes or online Programs.
