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Episode 2: Option Value: Direction Is Not Enough
Why getting the currency direction right is not enough. This episode explains intrinsic value, time value, moneyness and the forces that can make an option lose value even when spot moves your way.This episode is part of FX Options Daily, a 30-day themed season of The Trading Floor covering pricing, hedging, exotics, risk and institutional FX options practice.Full treatment: Chapter 2 of FX Options.Educational content only. Nothing in this episode constitutes investment advice.
The skinny
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