Introduction to FX Options

Introduction to FX Options

In an option transaction, one party will have the right to execute a spot transaction some time in the future at an agreed rate. Kees provides an introduction to this specific contract by explaining what options are, before expanding into elements such as assessing the payoff and fair value.
Overview

In an Option transaction, one party is given the right, not obligation to execute a spot transaction sometime in the future at an agreed rate. The benefit of holding an option is it provides security and reduces uncertainty for a trader.

Key learning objectives:

  • Define Spot’s, Forwards and Swaps products

  • Identify the benefits of holding FX Options

  • Explain the difference between Put/Call Options and when an option might be exercised.

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Summary
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Expert
Kees van den Aarssen

Kees van den Aarssen

Kees has over 30 years of experience in Financial Markets. He has sophisticated expertise in sales and trading roles working in Foreign Exchange and Money Markets. He now conducts seminars, workshops and training courses for clients all over the world.

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