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B PROBLEM OF FORWARD CONTRACT b DEFINITION OF OPTION CONTRACT & BENEFIT OVER FORWARD CONTRACT b OPTION TERMINOLOGIES - CALL OPTION - PUT OPTION - BUYER.

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Presentation on theme: "B PROBLEM OF FORWARD CONTRACT b DEFINITION OF OPTION CONTRACT & BENEFIT OVER FORWARD CONTRACT b OPTION TERMINOLOGIES - CALL OPTION - PUT OPTION - BUYER."— Presentation transcript:

1 b PROBLEM OF FORWARD CONTRACT b DEFINITION OF OPTION CONTRACT & BENEFIT OVER FORWARD CONTRACT b OPTION TERMINOLOGIES - CALL OPTION - PUT OPTION - BUYER & SELLER OF OPTION - PUT OPTION - AMERICAN & EUROPEAN OPTION CURRENCY OPTION DERIVATIVE

2 - VALUE OF OPTION AT MONEY, IN MONEY & OUT MONEY - VALUE OF OPTION AT MONEY, IN MONEY & OUT MONEY - PROFIT PROFILE OF CALL & PUT OPTION b USD/INR EXCHANGE TRADED OPTION CONTRACT CURRENCY & AMOUNT, CONTRACTS MATURITIES, RATES & SETTLEMENT b HEDGING WITH OPTION EXPORT & IMPORT TRANSACTIONS b SPECULATION WITH OPTIONS

3 CURRENCY OPTION DERIVATIVE - STRATEGIES WITH OPTIONS - STRATEGIES WITH OPTIONS - ZERO COST OPTION - BARRIER OPTION - STRADLES (BUY CALL & PUT AT SAME RATE) - STRANGLE (BUY CALL & PUT AT DIFFERENT RATES) - SPREADS (TWO OR MORE OPTION OF SAME TYPE)

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