
C h a p t e r
Chapter ObjeCtives
7
Currency Options
After studying this chapter, you should be able to:
1 Describe currency options and understand their relevance.
2 Identify different forms of options.
3 Explain the payoff profiles of standard options.
4 Understand the concept of option value.
5 Discuss the determinants of currency option price.
6 Analyse options trading strategies.
7 Explain the applications of options pricing models.
8 Discuss option Greeks.
9 Define options on futures.
10 Distinguish between forwards and options, and analyse when each of these is
appropriate.
11 Discuss options trading in India.
Introduction ...