A Currency Options Primer
Wiley Finance Series
1. Edition January 2004
210 Pages, Hardcover
Wiley & Sons Ltd
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.
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.
Shani Shamah (London, UK) has spent over 20 years in the financial securities market. She has worked at Banque Paribas; Chase Manhattan Bank NA; Chemical Bank, London; and Numura Bank, London.
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.
