Factors affect currency put options to hedge


Factors affect currency put options to hedge


In both, the most you can loose is the premium paid. IF you are SELLING the option, selling the put is more risky. Because a stock can technically go to pengalaman forex yahoo, you have unlimited loss potential. When selling a call, you can only loose up to the value of the stock as long as the call is covered. Puts exercise if the share price is below the strike price, not above. If you write calls, you can lose everything between the strike price and the share price.

Risk of Currency Futures.Currency futures markets are commonly used as a means of capitalizing on shifts in currency values, because the value of a futures contract tends to move in line with the change in the corresponding currency value. Recently, many currencies appreciated against the dollar. Most speculators anticipated that these currencies would continue to strengthen and took large buy positions in currency futures. However, the Fed intervened in the foreign exchange market by immediately selling foreign currencies in exchange for dollars, causing an abrupt decline in the values of foreign currencies (as the dollar strengthened).

Participants that had purchased currency futures contracts incurred large losses.




Factors affect currency put options to hedge

Options affect put to currency hedge factors

Factors affect currency put options to hedge



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