Foreign exchange options

Author: Ye Yonggang
Publisher:
Publish Date: 2004-07-01
Features: This book is primarily composed of two parts: Part One introduces the basic principles of foreign exchange options trading, covering fundamental concepts and trading scenarios, and provides a detailed overview of the current development status of the global foreign exchange options market. It also conducts an in-depth analysis of the pricing of foreign exchange options and their price sensitivity, and, with practical examples, discusses basic trading strategies for foreign exchange options. Additionally, the book offers a dedicated discussion on the rapidly evolving exotic foreign exchange options. Part Two looks ahead to the construction of a foreign exchange options market in China and proposes original, forward-looking design solutions. First, it elaborates on the necessity of using foreign exchange options to manage China's foreign exchange risks. Then, it examines the participants in China's foreign exchange options trading and proposes a basic framework for the over-the-counter (OTC) foreign exchange options market, particularly highlighting the importance of introducing a market-making system. Finally, it provides a detailed and comprehensive design for the organizational structure, clearing system, regulatory framework, and related legal and institutional arrangements of both the OTC and exchange-traded foreign exchange options markets.