Posted by R. MAK. on August 11, 2009 ·
In finance, a general term that is used to denote the class into which the option falls is the style or family of an option. It is usually defined by the dates on which the option may be exercised. The vast majority of options are either European or American (style) options. These options as well as others where the payoff is calculated similarly are known as “vanilla options”. Options where the payoff is calculated differently are referred to as “exotic options”. Challenging problems in valuation and hedging can…
Posted by R. MAK. on August 8, 2009 ·
In finance, a foreign exchange option (which is commonly shortened to just FX option or currency option) is a derivative financial instrument where it is not the right but the obligation of the owner to exchange money denominated in one currency into…
Posted by R. MAK. on August 1, 2009 ·
In this article I have explained about different financial instruments that are used in the trade of currency in…
