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Shamah, Shani
A Currency Options Primer
Wiley Finance Series

1. Edition - January 2004
77.90 Euro
2004. 210 Pages, Hardcover
ISBN-10: 0-470-87036-2
ISBN-13: 978-0-470-87036-5 - John Wiley & Sons


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Sample Chapter

Short description
The pressure to maintain currency parity has led to the breakdown of many exchange rate mechanisms, and has forced the need for active foreign exchange hedging decisions to prevent the erosion of profit margins. Today, an understanding of currency options is essential for those working in investment and foreign exchange. A Currency Options Primer sets out to give readers clear guidance on how the currency option market functions-offering practical advice on mastering the necessary components and concepts needed for fully understanding the workings of this market.

From the contents
Disclaimer.

1 Introduction.

PART I: MARKET OVERVIEW.

2 The Foreign Exchange Market.

3 A Brief History of the Market.

4 Market Overview.

5 Major Participants.

6 Roles Played.

7 Purposes.

8 Applications of Currency Options.

9 Users of Currency Options.

Glossary of foreign exchange terms.

PART II: CURRENCY OPTIONS - THE ESSENTIALS.

10 Definitions and Terminology.

11 The Currency Option Concept.

12 The Currency Options Market.

13 Option Pricing Theories.

14 The Greeks.

15 Payoff and Profit/Loss Diagrams.

16 Basic Properties of Options.

17 Risk Reversals.

18 Market Conventions.

Basic option glossary.

PART III: CURRENCY OPTION PRODUCTS.

19 Vanilla Options.

20 Common Option Strategies.

21 Exotic Options.

22 Structured Currency Options.

23 Case Studies.

24 Option Hedge Matrix.

Exotic currency option glossary.

25 Concluding Remarks.

Index.


 
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