# data[].attributes.body
Opening price

# data[].attributes.body
High and Low quotes for the trading day

# data[].attributes.body
Settlement price

# data[].attributes.body
Open interest

# data[].attributes.body
American options contracts exercise any day before the expiration date

# data[].attributes.body
The seller's biggest profit is equal to the option contract selling price

# data[].attributes.body
The seller's biggest profit is equal to the option contract selling price

# data[].attributes.body
The buyer's biggest loss is equal to the option contract's selling price.

# data[].attributes.body
exercise value (intrinsic value) :

call option: exercise value = St - E

put option: exercise value = E - St

=> If the intrinsic is positive, it implies a profit for the buyer.

# data[].attributes.body
the American call and put premiums at time t will be at least as large as the immediate exercise value, or the intrinsic value, of the call or put option

# data[].attributes.body
European Option-Pricing Formula

# data[].attributes.body
Empirical Tests of Currency Options

# data[].attributes.body
Option to buy is a CALL
Option to sell is a PUT
The seller of an option is referred to as the writer (or the short)
Stated price paid or received is known as the exercise or striking price

# data[].attributes.body
European option

American option

# data[].attributes.body
Risk-neutral probability of the EUR appreciating is:
q = ( Ft - S0*d )/S0*(u-d)

Binomial call option premium is determined by:
C0 = [ qCuT + ( 1-q )CdT ] / ( 1 + i$ )

# data[].attributes.body
Options on currency futures behave very similarly to options on the physical currency since the futures price converges to the spot price as the futures contract nears maturity.

# data[].attributes.headline
Basic Option-Pricing Relationships at Expiration 

# data[].attributes.subject
Basic Option-Pricing Relationships at Expiration 

# data[].attributes.body
ST > E (E > ST) expires in-the-money

# data[].attributes.body
ST = E, the option expires at-the-money

# data[].attributes.body
ST < E (E < ST), the call (put) option expires out-of-the-money

# data[].attributes.body
Both forward and futures contracts are derivative or contingent claim securities because their values are derived from or contingent upon the value of the underlying security

# data[].attributes.body
Forward contract: Tailor-made for a client by their international bank

# data[].attributes.body
Futures contract:
•Standardized features (e.g., contract size, maturity date, delivery months)

•Exchange traded

# data[].attributes.body
An initial performance bond (formerly called margin) must be deposited into a collateral account to establish a futures position
•Generally equal to 2% of contract value

•Cash or T-bills may be used to meet requirement

# data[].attributes.body
Major difference between forward contract and futures contract is the way the underlying asset is priced for future purchase or sale
- Forward contract states a price for the future transaction
- Futures contract is settled-up, or marked-to-market, daily at the settlement price

# data[].attributes.headline
Differences between Futures and Forward Contract

# data[].attributes.subject
Differences between Futures and Forward Contract