15
Currency Options, Interest Rate Options and Options on Futures
Learning Objectives
After completing this chapter, you will be able to answer the following questions:
- What are currency options?
- What are the uses of currency options?
- How are currency options priced?
- What are interest rate options?
- What are interest rate caps, floors, and collars?
- How are interest rate options priced?
- What are options on futures?
- How are options on futures priced?
In Chapters 13 and 14, we discussed the pricing of options on individual stocks and stock indexes by using the binomial model and the Black–Scholes model. In this chapter, we will discuss currency options, interest rate options, and options on futures contracts.
15.1 Currency Options
Currency options ...
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