{"product_id":"a-currency-options-primer-hardback-9780470870365","title":"A Currency Options Primer (Hardback) 9780470870365","description":"\u003cfont face=\"Georgia\"\u003e\r\n\u003cp\u003e\u003cfont size=\"6\"\u003eA Currency Options Primer\u003c\/font\u003e\u003cbr\u003e\r\n\r\n\r\n\r\n\r\n\r\n\u003c\/p\u003e\n\u003cp\u003e\u003cfont size=\"4\"\u003eShani Shamah (Author)\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e9780470870365, Wiley\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eHardback, published 27 January 2004\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e224 pages\u003cbr\u003e24.6 x 17.6 x 2.4 cm, 0.539 kg\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\r\n\r\n\r\n\u003cp align=\"justify\"\u003e\u003cstrong\u003e\u003cfont size=\"3\"\u003e\u003cb\u003eA quick and concise guide to currency options\u003c\/b\u003e\u003cbr\u003e 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.\u003c\/font\u003e\u003c\/strong\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e\u003cp\u003eDisclaimer xi\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Introduction 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1.1 The forward foreign exchange market 1\u003c\/p\u003e \u003cp\u003e1.2 The currency options market 1\u003c\/p\u003e \u003cp\u003e1.3 The alternatives to currency options 2\u003c\/p\u003e \u003cp\u003e1.4 The users 2\u003c\/p\u003e \u003cp\u003e1.5 Whose domain? 2\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART I MARKET OVERVIEW 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 The Foreign Exchange Market 5\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e2.1 Twenty-four-hour global market 5\u003c\/p\u003e \u003cp\u003e2.2 Value terms 5\u003c\/p\u003e \u003cp\u003e2.3 Coffee houses 6\u003c\/p\u003e \u003cp\u003e2.4 Spot and forward market 6\u003c\/p\u003e \u003cp\u003e2.5 Alternative markets 7\u003c\/p\u003e \u003cp\u003e2.6 Currency options 7\u003c\/p\u003e \u003cp\u003e2.7 Concluding remarks 8\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 A Brief History of the Market 9\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e3.1 The barter system 9\u003c\/p\u003e \u003cp\u003e3.2 The introduction of coinage 9\u003c\/p\u003e \u003cp\u003e3.3 The expanding British Empire 10\u003c\/p\u003e \u003cp\u003e3.4 The gold standard 10\u003c\/p\u003e \u003cp\u003e3.5 The Bretton Woods system 11\u003c\/p\u003e \u003cp\u003e3.6 The International Monetary Fund and the World Bank 11\u003c\/p\u003e \u003cp\u003e3.7 The dollar rules OK 12\u003c\/p\u003e \u003cp\u003e3.8 Special drawing rights 12\u003c\/p\u003e \u003cp\u003e3.9 A dollar problem 13\u003c\/p\u003e \u003cp\u003e3.10 The Smithsonian agreement 13\u003c\/p\u003e \u003cp\u003e3.11 The snake 13\u003c\/p\u003e \u003cp\u003e3.12 The dirty float 13\u003c\/p\u003e \u003cp\u003e3.13 The European Monetary System 14\u003c\/p\u003e \u003cp\u003e3.14 The Exchange Rate Mechanism 14\u003c\/p\u003e \u003cp\u003e3.15 The European Currency Unit 15\u003c\/p\u003e \u003cp\u003e3.16 The Maastricht Treaty 15\u003c\/p\u003e \u003cp\u003e3.17 The Treaty of Rome 15\u003c\/p\u003e \u003cp\u003e3.18 Economic reform 16\u003c\/p\u003e \u003cp\u003e3.19 A common monetary policy 16\u003c\/p\u003e \u003cp\u003e3.20 A single currency 16\u003c\/p\u003e \u003cp\u003e3.21 Currency options 18\u003c\/p\u003e \u003cp\u003e3.22 Concluding remarks 20\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Market Overview 21\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e4.1 Global market 21\u003c\/p\u003e \u003cp\u003e4.2 No physical trading floor 21\u003c\/p\u003e \u003cp\u003e4.3 A “perfect” market 21\u003c\/p\u003e \u003cp\u003e4.4 The main instruments 22\u003c\/p\u003e \u003cp\u003e4.5 Comparisons of options with spot and forwards 23\u003c\/p\u003e \u003cp\u003e4.6 The dollar’s role 24\u003c\/p\u003e \u003cp\u003e4.7 Widely traded currency pairs 24\u003c\/p\u003e \u003cp\u003e4.8 Concluding remarks 25\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Major Participants 27\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e5.1 Governments 27\u003c\/p\u003e \u003cp\u003e5.2 Banks 27\u003c\/p\u003e \u003cp\u003e5.3 Brokering houses 29\u003c\/p\u003e \u003cp\u003e5.4 International Monetary Market 29\u003c\/p\u003e \u003cp\u003e5.5 Money managers 29\u003c\/p\u003e \u003cp\u003e5.6 Corporations 29\u003c\/p\u003e \u003cp\u003e5.7 Retail clients 29\u003c\/p\u003e \u003cp\u003e5.8 Others 30\u003c\/p\u003e \u003cp\u003e5.9 Speculators 30\u003c\/p\u003e \u003cp\u003e5.10 Trade and financial flows 30\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Roles Played 33\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e6.1 Market makers 33\u003c\/p\u003e \u003cp\u003e6.2 Price takers 33\u003c\/p\u003e \u003cp\u003e6.3 A number of roles 33\u003c\/p\u003e \u003cp\u003e6.4 A number of roles – options 34\u003c\/p\u003e \u003cp\u003e6.5 Concluding remarks 34\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Purposes 35\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e7.1 Commercial transactions 35\u003c\/p\u003e \u003cp\u003e7.2 Funding 35\u003c\/p\u003e \u003cp\u003e7.3 Hedging 35\u003c\/p\u003e \u003cp\u003e7.4 Portfolio investment 36\u003c\/p\u003e \u003cp\u003e7.5 Personal 36\u003c\/p\u003e \u003cp\u003e7.6 Market making 36\u003c\/p\u003e \u003cp\u003e7.7 Transaction exposure 36\u003c\/p\u003e \u003cp\u003e7.8 Translation exposure 37\u003c\/p\u003e \u003cp\u003e7.9 Economic exposure 37\u003c\/p\u003e \u003cp\u003e7.10 Concluding remarks 37\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Applications of Currency Options 39\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Users of Currency Options 41\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e9.1 Variety of reasons 41\u003c\/p\u003e \u003cp\u003e9.1.1 Example 1 42\u003c\/p\u003e \u003cp\u003e9.1.2 Example 2 43\u003c\/p\u003e \u003cp\u003e9.1.3 Example 3 43\u003c\/p\u003e \u003cp\u003e9.2 Hedging vs speculation 44\u003c\/p\u003e \u003cp\u003eGlossary of foreign exchange terms 45\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART II CURRENCY OPTIONS – THE ESSENTIALS 47\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Definitions and Terminology 49\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e10.1 Call option 50\u003c\/p\u003e \u003cp\u003e10.2 Put option 50\u003c\/p\u003e \u003cp\u003e10.3 Parties and the risks involved 51\u003c\/p\u003e \u003cp\u003e10.4 Currency option risk\/reward perception 51\u003c\/p\u003e \u003cp\u003e10.5 Currency or dollar call or put option? 52\u003c\/p\u003e \u003cp\u003e10.6 Strike price and strike selection 52\u003c\/p\u003e \u003cp\u003e10.7 Exercising options 53\u003c\/p\u003e \u003cp\u003e10.8 American and European style options 53\u003c\/p\u003e \u003cp\u003e10.9 In-, at- or out-of-the-money 55\u003c\/p\u003e \u003cp\u003e10.10 The premium 57\u003c\/p\u003e \u003cp\u003e10.11 Volatility 59\u003c\/p\u003e \u003cp\u003e10.12 Break-even 60\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 The Currency Option Concept 61\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 The Currency Options Market 63\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e12.1 Exchange vs over-the-counter 63\u003c\/p\u003e \u003cp\u003e12.2 Standardised Options 65\u003c\/p\u003e \u003cp\u003e12.3 Customised options 66\u003c\/p\u003e \u003cp\u003e12.4 Features of the listed market 67\u003c\/p\u003e \u003cp\u003e12.5 Comparisons 69\u003c\/p\u003e \u003cp\u003e12.6 Where is the market? 69\u003c\/p\u003e \u003cp\u003e12.7 Concluding remarks 69\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 Option Pricing Theories 71\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e13.1 Basic properties 71\u003c\/p\u003e \u003cp\u003e13.2 Theoretical valuation 72\u003c\/p\u003e \u003cp\u003e13.3 Black-Scholes model 73\u003c\/p\u003e \u003cp\u003e13.4 Examples of other models 74\u003c\/p\u003e \u003cp\u003e13.5 Pricing without a computer model 76\u003c\/p\u003e \u003cp\u003e13.6 Educated guess 76\u003c\/p\u003e \u003cp\u003e13.7 The price of an option 76\u003c\/p\u003e \u003cp\u003e13.8 Option premium profile 78\u003c\/p\u003e \u003cp\u003e13.9 Time value and intrinsic value 78\u003c\/p\u003e \u003cp\u003e13.10 Time to expiry 79\u003c\/p\u003e \u003cp\u003e13.11 Volatility 79\u003c\/p\u003e \u003cp\u003e13.12 Strike price and forward rates 82\u003c\/p\u003e \u003cp\u003e13.13 Interest rates 82\u003c\/p\u003e \u003cp\u003e13.14 American vs European 83\u003c\/p\u003e \u003cp\u003e13.15 Concluding remarks 84\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 The Greeks 85\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e14.1 Delta 85\u003c\/p\u003e \u003cp\u003e14.2 Gamma 88\u003c\/p\u003e \u003cp\u003e14.3 Theta 90\u003c\/p\u003e \u003cp\u003e14.4 Vega 92\u003c\/p\u003e \u003cp\u003e14.5 Rho 92\u003c\/p\u003e \u003cp\u003e14.6 Beta and omega 93\u003c\/p\u003e \u003cp\u003e\u003cb\u003e15 Payoff and Profit\/Loss Diagrams 95\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e15.1 Payoff diagram 95\u003c\/p\u003e \u003cp\u003e15.2 Profit diagram 95\u003c\/p\u003e \u003cp\u003e15.3 The option writer 97\u003c\/p\u003e \u003cp\u003e15.4 Put option 97\u003c\/p\u003e \u003cp\u003e15.5 Put option writer 98\u003c\/p\u003e \u003cp\u003e15.6 Basic option positions 98\u003c\/p\u003e \u003cp\u003e15.7 Graph addition 100\u003c\/p\u003e \u003cp\u003e15.8 Profit\/loss profiles for ten popular option strategies 101\u003c\/p\u003e \u003cp\u003e15.9 Concluding remarks 102\u003c\/p\u003e \u003cp\u003e\u003cb\u003e16 Basic Properties of Options 105\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e16.1 Option values 105\u003c\/p\u003e \u003cp\u003e16.2 Put\/call parity concept 106\u003c\/p\u003e \u003cp\u003e16.3 Synthetic positions 108\u003c\/p\u003e \u003cp\u003e\u003cb\u003e17 Risk Reversals 111\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e17.1 Understanding risk reversals 111\u003c\/p\u003e \u003cp\u003e17.2 Implications for traders 112\u003c\/p\u003e \u003cp\u003e17.3 Implications for hedgers 113\u003c\/p\u003e \u003cp\u003e17.4 Concluding remarks 114\u003c\/p\u003e \u003cp\u003e\u003cb\u003e18 Market Conventions 115\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e18.1 Option price 115\u003c\/p\u003e \u003cp\u003e18.2 What rate to use? 116\u003c\/p\u003e \u003cp\u003e18.3 Live price 116\u003c\/p\u003e \u003cp\u003e18.4 Pricing terms 117\u003c\/p\u003e \u003cp\u003e18.5 Premium conversions 117\u003c\/p\u003e \u003cp\u003e18.6 Settlement 117\u003c\/p\u003e \u003cp\u003e18.7 How is an option exercised? 118\u003c\/p\u003e \u003cp\u003e18.8 Risks 118\u003c\/p\u003e \u003cp\u003e18.9 Concluding remarks 119\u003c\/p\u003e \u003cp\u003eBasic option glossary 121\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART III CURRENCY OPTION PRODUCTS 125\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e19 Vanilla Options 127\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e19.1 Long options 127\u003c\/p\u003e \u003cp\u003e19.2 Short options 127\u003c\/p\u003e \u003cp\u003e19.3 Straddle 128\u003c\/p\u003e \u003cp\u003e19.4 Strangle 129\u003c\/p\u003e \u003cp\u003e19.5 Cylinder 130\u003c\/p\u003e \u003cp\u003e19.6 Collar 131\u003c\/p\u003e \u003cp\u003e19.7 Participating forward 131\u003c\/p\u003e \u003cp\u003e19.8 Ratio forward 132\u003c\/p\u003e \u003cp\u003e19.9 Added extras to vanilla options 133\u003c\/p\u003e \u003cp\u003e\u003cb\u003e20 Common Option Strategies 135\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e20.1 Directional options 137\u003c\/p\u003e \u003cp\u003e20.2 Precision options 139\u003c\/p\u003e \u003cp\u003e20.3 Locked trade options 144\u003c\/p\u003e \u003cp\u003e\u003cb\u003e21 Exotic Options 145\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e21.1 Barriers 145\u003c\/p\u003e \u003cp\u003e21.2 Average rates 148\u003c\/p\u003e \u003cp\u003e21.3 Lookback and ladder 149\u003c\/p\u003e \u003cp\u003e21.4 Chooser 152\u003c\/p\u003e \u003cp\u003e21.5 Digital (binary) 153\u003c\/p\u003e \u003cp\u003e21.6 Baskets 154\u003c\/p\u003e \u003cp\u003e21.7 Compound 156\u003c\/p\u003e \u003cp\u003e21.8 Variable notional 157\u003c\/p\u003e \u003cp\u003e21.9 Multi-factor 158\u003c\/p\u003e \u003cp\u003e\u003cb\u003e22 Structured Currency Options 159\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e22.1 Trigger forward 159\u003c\/p\u003e \u003cp\u003e22.2 Double trigger forward 160\u003c\/p\u003e \u003cp\u003e22.3 At maturity trigger forward 161\u003c\/p\u003e \u003cp\u003e22.4 Forward extra 161\u003c\/p\u003e \u003cp\u003e22.5 Weekly reset forward 162\u003c\/p\u003e \u003cp\u003e22.6 Range binary 163\u003c\/p\u003e \u003cp\u003e22.7 Contingent premium 163\u003c\/p\u003e \u003cp\u003e22.8 Wall 164\u003c\/p\u003e \u003cp\u003e22.9 Corridor 165\u003c\/p\u003e \u003cp\u003e\u003cb\u003e23 Case Studies 167\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e23.1 Hedging 167\u003c\/p\u003e \u003cp\u003e23.2 Trading 169\u003c\/p\u003e \u003cp\u003e23.3 Investment 170\u003c\/p\u003e \u003cp\u003e23.4 Bid to offer exposure 171\u003c\/p\u003e \u003cp\u003e23.5 Concluding remarks 173\u003c\/p\u003e \u003cp\u003e\u003cb\u003e24 Option Hedge Matrix 175\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eExotic currency option glossary 187\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e25 Concluding Remarks 193\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIndex 195\u003c\/p\u003e\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eSubject Areas: Finance \u0026amp; accounting [\u003ca title=\"See our other books on Finance \u0026amp; accounting\" href=\"https:\/\/freshlyprintedbooks.co.uk\/search?q=%22Finance%20\u0026amp;%20accounting%20%5BKF%5D%22\"\u003eKF\u003c\/a\u003e]\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\u003c\/font\u003e","brand":"Wiley","offers":[{"title":"Brand New","offer_id":52278057533720,"sku":"9780470870365","price":55.19,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0730\/2037\/5320\/files\/9780470870365.jpg?v=1781457774","url":"https:\/\/freshlyprintedbooks.co.uk\/products\/a-currency-options-primer-hardback-9780470870365","provider":"Freshly Printed Books","version":"1.0","type":"link"}