oussama94
05-28-2017, 19:12
With currency options, quoting conventions vary
depending on where the option is traded. At the Philadelphia Stock
Exchange, for example, euro currency options are quoted in terms of
U.S. dollars per unit of underlying currency, and each contract is worth
10,000 euros. The point value is $100 (i.e., one full Eurocent = currency
value × 100). At the International Securities Exchange, ** options have
underlying values expressed in foreign currency units per U.S. dollar that
are modified to create an indexlike underlying. For example, if the current
exchange rate for USD/EUR is 0.7829, the underlying value for the
USD/EUR ISE ** option would be 78.29 (0.7829 × 100). This format is designed
to help investors easily adapt the trading strategies they currently
use for equity and index options. One point is equal $100. The Chicago Mercantile
Exchange, by contrast, offers options trading on futures contracts.
The trading unit is one CME futures contract (in euros, one contract =
125,000 euros), and the minimum tick size is 0.0001 per euro, which is the
equivalent point value of $12.50
depending on where the option is traded. At the Philadelphia Stock
Exchange, for example, euro currency options are quoted in terms of
U.S. dollars per unit of underlying currency, and each contract is worth
10,000 euros. The point value is $100 (i.e., one full Eurocent = currency
value × 100). At the International Securities Exchange, ** options have
underlying values expressed in foreign currency units per U.S. dollar that
are modified to create an indexlike underlying. For example, if the current
exchange rate for USD/EUR is 0.7829, the underlying value for the
USD/EUR ISE ** option would be 78.29 (0.7829 × 100). This format is designed
to help investors easily adapt the trading strategies they currently
use for equity and index options. One point is equal $100. The Chicago Mercantile
Exchange, by contrast, offers options trading on futures contracts.
The trading unit is one CME futures contract (in euros, one contract =
125,000 euros), and the minimum tick size is 0.0001 per euro, which is the
equivalent point value of $12.50