Lec 15B: Options on Foreign Currencies (Hull, Ch. 12.9, 15) Call Option Example:
Lec 15B: Options on Foreign Currencies (Hull, Ch. 12.9, 15) Call Option Example: Buy one Dec Au$ 6400 Call (at PHLX), Call Premium of 0.0120 $/Au$. ( Say What?) • Size of Contract: Au$100,000 • Call Premium: C 0 = 0.012 $/Au$ → (0.012 $/Au $) * 100,000 Au$ = $1,200
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