Exchange traded currency options - part 1
Taught by Ben Wilson · AI tutor support included
In this lesson, you'll learn how to read and work with exchange traded currency options tables, and master the eight-step calculation process for exam questions.
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In this lesson
- 0:00 Exchange Traded Currency Options Overview
- 0:48 Key Terminology and Differences
- 2:28 Reading Options Tables Explained
- 4:07 Premium Patterns and Price Logic
- 5:27 Eight-Step Calculation Methodology
- 7:00 Exercise Decisions and Net Outcomes
About this lesson
Exchange traded options give you the right—but not the obligation—to buy or sell currency at a set price, removing downside risk while letting you benefit from favourable moves. They differ from OTC options in that they're standardised (fixed contract sizes and monthly exercise dates), tradable on exchanges, and presented to you in data tables during your exam. You'll discover how to interpret premium tables, identify whether you need calls (if you're buying) or puts (if you're selling), pick the right contract date, calculate how many contracts you need, work out your total premium cost, and ultimately determine your net gain or loss once you've decided whether to exercise your options or let them lapse.
Duration: 8m
Transcript
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