| Edition |
2nd ed |
| Descript |
1 online resource (211 pages) |
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text txt rdacontent |
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computer c rdamedia |
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online resource cr rdacarrier |
| Series |
The Wiley Finance Ser |
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The Wiley Finance Ser
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| Note |
Intro -- A Currency Options Primer -- Contents -- Disclaimer -- 1 Introduction -- 1.1 The forward foreign exchange market -- 1.2 The currency options market -- 1.3 The alternatives to currency options -- 1.4 The users -- 1.5 Whose domain? -- PART I MARKET OVERVIEW -- 2 The Foreign Exchange Market -- 2.1 Twenty-four-hour global market -- 2.2 Value terms -- 2.3 Coffee houses -- 2.4 Spot and forward market -- 2.5 Alternative markets -- 2.6 Currency options -- 2.7 Concluding remarks -- 3 A Brief History of the Market -- 3.1 The barter system -- 3.2 The introduction of coinage -- 3.3 The expanding British Empire -- 3.4 The gold standard -- 3.5 The Bretton Woods system -- 3.6 The International Monetary Fund and the World Bank -- 3.7 The dollar rules OK -- 3.8 Special drawing rights -- 3.9 A dollar problem -- 3.10 The Smithsonian agreement -- 3.11 The snake -- 3.12 The dirty float -- 3.13 The European Monetary System -- 3.14 The Exchange Rate Mechanism -- 3.15 The European Currency Unit -- 3.16 The Maastricht Treaty -- 3.17 The Treaty of Rome -- 3.18 Economic reform -- 3.19 A common monetary policy -- 1.20 A single currency -- 3.21 Currency options -- 3.22 Concluding remarks -- 4 Market Overview -- 4.1 Global market -- 4.2 No physical trading floor -- 4.3 A "perfect" market -- 4.4 The main instruments -- 4.5 Comparisons of options with spot and forwards -- 4.6 The dollar's role -- 4.7 Widely traded currency pairs -- 4.8 Concluding remarks -- 5 Major Participants -- 5.1 Governments -- 5.2 Banks -- 5.3 Brokering houses -- 5.4 International Monetary Market -- 5.5 Money managers -- 5.6 Corporations -- 5.7 Retail clients -- 5.8 Others -- 5.9 Speculators -- 5.10 Trade and financial flows -- 6 Roles Played -- 6.1 Market makers -- 6.2 Price takers -- 6.3 A number of roles -- 6.4 A number of roles - options -- 6.5 Concluding remarks -- 7 Purposes |
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7.1 Commercial transactions -- 7.2 Funding -- 7.3 Hedging -- 7.4 Portfolio investment -- 7.5 Personal -- 7.6 Market making -- 7.7 Transaction exposure -- 7.8 Translation exposure -- 7.9 Economic exposure -- 7.10 Concluding remarks -- 8 Applications of Currency Options -- 9 Users of Currency Options -- 9.1 Variety of reasons -- 9.1.1 Example 1 -- 9.1.2 Example 2 -- 9.1.3 Example 3 -- 9.2 Hedging vs speculation -- Glossary of foreign exchange terms -- PART II CURRENCY OPTIONS - THE ESSENTIALS -- 10 Definitions and Terminology -- 10.1 Call option -- 10.2 Put option -- 10.3 Parties and the risks involved -- 10.4 Currency option risk/reward perception -- 10.5 Currency or dollar call or put option? -- 10.6 Strike price and strike selection -- 10.7 Exercising options -- 10.8 American and European style options -- 10.9 In-, at- or out-of-the-money -- 10.10 The premium -- 10.11 Volatility -- 10.12 Break-even -- 11 The Currency Option Concept -- 12 The Currency Options Market -- 12.1 Exchange vs over-the-counter -- 12.2 Standardised Options -- 12.3 Customised options -- 12.4 Features of the listed market -- 12.5 Comparisons -- 12.6 Where is the market? -- 12.7 Concluding remarks -- 13 Option Pricing Theories -- 13.1 Basic properties -- 13.2 Theoretical valuation -- 13.3 Black-Scholes model -- 13.4 Examples of other models -- 13.5 Pricing without a computer model -- 13.6 Educated guess -- 13.7 The price of an option -- 13.8 Option premium profile -- 13.9 Time value and intrinsic value -- 13.10 Time to expiry -- 13.11 Volatility -- 13.12 Strike price and forward rates -- 13.13 Interest rates -- 13.14 American vs European -- 13.15 Concluding remarks -- 14 The Greeks -- 14.1 Delta -- 14.2 Gamma -- 14.3 Theta -- 14.4 Vega -- 14.5 Rho -- 14.6 Beta and omega -- 15 Payoff and Profit/Loss Diagrams -- 15.1 Payoff diagram -- 15.2 Profit diagram -- 15.3 The option writer |
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15.4 Put option -- 15.5 Put option writer -- 15.6 Basic option positions -- 15.7 Graph addition -- 15.8 Profit/loss profiles for ten popular option strategies -- 15.9 Concluding remarks -- 16 Basic Properties of Options -- 16.1 Option values -- 16.2 Put/call parity concept -- 16.3 Synthetic positions -- 17 Risk Reversals -- 17.1 Understanding risk reversals -- 17.2 Implications for traders -- 17.3 Implications for hedgers -- 17.4 Concluding remarks -- 18 Market Conventions -- 18.1 Option price -- 18.2 What rate to use? -- 18.3 Live price -- 18.4 Pricing terms -- 18.5 Premium conversions -- 18.6 Settlement -- 18.7 How is an option exercised? -- 18.8 Risks -- 18.9 Concluding remarks -- Basic option glossary -- PART III CURRENCY OPTION PRODUCTS -- 19 Vanilla Options -- 19.1 Long options -- 19.2 Short options -- 19.3 Straddle -- 19.4 Strangle -- 19.5 Cylinder -- 19.6 Collar -- 19.7 Participating forward -- 19.8 Ratio forward -- 19.9 Added extras to vanilla options -- 20 Common Option Strategies -- 20.1 Directional options -- 20.2 Precision options -- 20.3 Locked trade options -- 21 Exotic Options -- 21.1 Barriers -- 21.2 Average rates -- 21.3 Lookback and ladder -- 21.4 Chooser -- 21.5 Digital (binary) -- 21.6 Baskets -- 21.7 Compound -- 21.8 Variable notional -- 21.9 Multi-factor -- 22 Structured Currency Options -- 22.1 Trigger forward -- 22.2 Double trigger forward -- 22.3 At maturity trigger forward -- 22.4 Forward extra -- 22.5 Weekly reset forward -- 22.6 Range binary -- 22.7 Contingent premium -- 22.8 Wall -- 22.9 Corridor -- 23 Case Studies -- 23.1 Hedging -- 23.2 Trading -- 23.3 Investment -- 23.4 Bid to offer exposure -- 23.5 Concluding remarks -- 24 Option Hedge Matrix -- Exotic currency option glossary -- 25 Concluding Remarks -- Index |
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A quick and concise guide to currency options An understanding of currency options is essential for those working in investment and foreign exchange. A Currency Options Primer sets out to give readers a clear guide to how the currency option market functions, offering practical advice on mastering the necessary components and concepts for fully understanding the workings of this market |
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Description based on publisher supplied metadata and other sources |
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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2020. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries |
| Link |
Print version: Shamah, Shani A Currency Options Primer
Hoboken : John Wiley & Sons, Incorporated,c2004 9780470870365
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| Subject |
Options (Finance);Foreign exchange
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Electronic books
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