This 2-part module introduces options on foreign exchange and the basic approach to pricing them using either the Black-Scholes formula or what is known as the method of binomial trees. We will examine the pros and cons of these two methods and use them to introduce the principal factor sensitivities of FX options.
target audience:DX1 Traders, risk managers, sales force, financial control and audit
prerequisite required:
– FX Introduction
prerequisite recommended:
– Interest Rate Options
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