Recent content by chichi

Hi all, Im not sure if this is the best place to do this but I am trying to complete the last question in a very large uni assignment. I need to explain the effect that variations in strike price and time have on option premiums.' If anyone can help me with my analysis please do. I have...

We have been getting a lot of media here about the subprime market. It is affecting our currency and the stock market but not at a level that is of major concern. What I want to know is the following: How can the banks lending practices be so ridiculous that they lend 100% loans to people with...

All, What impact do the strike price and time have on an option premium. I have attached a calc - I think this is demonstrating if this is in the money. If I increase the time period the pall and put figures increase. I am not sure how to read the calculator. Do you think the part at the...

I am confused, why does a hedger of foreign currency risk prefers to let a foreign currency option lapse, while a speculator prefers to exercise the foreign currency option? In addition, is there a circumstance where both are pleased they will both exercise? This is the exact wording of the...

Hi I am new to all of this and I have a question that hopefully someone can help me with. In regards to foreign currency risk options - Why do hedgers generally let the option lapse but speculators prefer to exercise the option? In addition when would they both exercise? thanks Joanne