Question Details

When should a speculator purchase a call option 



1. Speculating With Currency Options. When should a speculator purchase a call option on
Australian dollars? When should a speculator purchase a put option on Australian dollars?

2. Speculating with Currency Futures. Assume that a March futures contract on Mexican pesos
was available in January for $.09 per unit. Also assume that forward contracts were available for
the same settlement date at a price of $.092 per peso. How could speculators capitalize on this
situation, assuming zero transaction costs? How would such speculative activity affect the
difference between the forward contract price and the futures price?



Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help