chapter 7

FX Options: Structured Solutions

LEARNING OBJECTIVES

This chapter aims to make readers understand different types of structures which could be used for hedging foreign exchange exposures originating from export and import or for expressing directional/volatility view on market. It also takes readers deep into the technicalities and complexities of the market explained in a simple yet effective manner with practical examples. Execution of various kinds of structures depends on prevailing regulations and laws of land and their suitability for various investors from risk-return perspective. The contents of this chapter are organized in the following order:

 

1. Vanilla Option

2. Barrier Option

3. Digitals

VANILLA OPTION

Vanilla Option ...

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