If the final price is 0.8 yuan, then this right is greatly beneficial to me, so you will overcharge me for the option fee. Charge me 0.25 or 0.30. Let's bargain, but it will definitely go up.
First, the higher the final price, it means that the buyer of the call option may spend more money in the future, the chance of profit will be reduced, and the option fee will be reduced;
The more money the buyer of put options receives in the future, the more opportunities for profit, which will lead to an increase in option fees.
The second problem is that the first situation does not hedge.
In the second case, sterling futures are sold through futures hedging.
In the third case, option hedging is used to buy put options (put).
The third problem is that the first situation does not hedge.
How many dollars did you actually receive? How much more or less than when the income occurs?
How much did the pound assets appreciate? The number must be bigger, which means the risk is greater.
In the second case, sterling futures are sold through futures hedging.
The appreciation of sterling assets-the result of sterling futures loss is definitely small, which reduces the risk.
In the third case, option hedging is used to buy put options (put).
Appreciation and depreciation of sterling assets-the loss of sterling option (put) is profitable, which reduces the risk of loss, but it is still possible to make a profit.
The fourth question is similar to the third question, but the result is different.
The first case does not hedge.
How many dollars did you actually receive? How much more or less than when the income occurs?
How much does foreign exchange assets depreciate? The number must be bigger.
In the second case, sterling futures are sold through futures hedging.
-The depreciation of sterling assets+the profit of sterling futures will definitely be smaller.
In the third case, option hedging is used to buy put options (put).
-Depreciation of sterling assets+small profit figure of sterling option (put).
You understand the concept of options first, and you calculate according to my idea.
There are not all kinds of floor options in China. Except for the search warrant.
The third problem is that the first situation does not hedge.
Actually received $ 1.7 1,
Is the appreciation of sterling assets 0. 122 1?
In the second case, sterling futures are sold through futures hedging.
0.1221-(1.7075-1.5789) = 0.0065, which reduces the risk.
In the third case, option hedging is used to buy put options (bearish 0.35).
0.1221-0.35 =-0.2279 Loss reduces the risk of loss, but there is still the possibility of profit.