A Currency Options Primer [Hardcover]

A quick and concise guide to currency options
An understanding of currency options is essential for those working in investment and foreign exchange. A Currency Options Primer sets out to give readers a clear guide to how the currency option market functions, offering practical advice on mastering the necessary components and concepts for fully understanding the workings of this market.

Disclaimer xi

1 Introduction 1

1.1 The forward foreign exchange market 1

1.2 The currency options market 1

1.3 The alternatives to currency options 2

1.4 The users 2

1.5 Whose domain? 2

PART I MARKET OVERVIEW 3

2 The Foreign Exchange Market 5

2.1 Twenty-four-hour global market 5

2.2 Value terms 5

2.3 Coffee houses 6

2.4 Spot and forward market 6

2.5 Alternative markets 7

2.6 Currency options 7

2.7 Concluding remarks 8

3 A Brief History of the Market 9

3.1 The barter system 9

3.2 The introduction of coinage 9

3.3 The expanding British Empire 10

3.4 The gold standard 10

3.5 The Bretton Woods system 11

3.6 The International Monetary Fund and the World Bank 11

3.7 The dollar rules OK 12

3.8 Special drawing rights 12

3.9 A dollar problem 13

3.10 The Smithsonian agreement 13

3.11 The snake 13

3.12 The dirty float 13

3.13 The European Monetary System 14

3.14 The Exchange Rate Mechanism 14

3.15 The Euld