Foreign Exchange: Options
Interactive

Foreign Exchange: Options

Intuition Publishing
Updated Sep 24, 2020

Foreign currency options can give the option holder the right to purchase the underlying currency at the strike price at or before a pre-specified date. we We learn about the different types of currency options and how their value can be calculated. The intrinsic and time value of options is explored and we discuss the pricing inputs for a foreign currency option, and the effect of changes in certain factors on the option price.