Lan Cai and the art of turning lead into gold

Author: Huang Hong / et al.
Editor-in-Chief: Xu Huiping
Publisher:
Publish Date: 1999-12-01
Features: Some say that Jin Yong's martial arts novels are "adult fairy tales," and this book, which uses the wise figures of the Eight Immortals in Chinese mythology to teach "military strategy wisdom" in the foreign exchange market, can be called the "new cartoon" for financial white-collar workers. It uses an easy-to-understand writing style to depict the dynamics of the foreign exchange market, making it a popular financial reading that combines knowledge, practicality, and interesting anecdotes. This book is part of the "Financial Eight Immortals Wisdom Series," with a total of eight chapters and eight sections. It elaborates on aspects such as the concept of foreign exchange options, standard foreign exchange options, foreign exchange option pricing, the parameters of foreign exchange options, the combinations of foreign exchange options, barrier options, and other non-standard foreign exchange options. The examples in the book are summaries of the author's experience in the foreign exchange market, making it easier for readers to understand the intricacies of options.
Excerpt: The emergence of foreign exchange options Due to the complexity of foreign exchange options (CurrencyOption), it wasn't until 1983 that the Chicago Mercantile Exchange (CME) listed foreign exchange options as a trading product for the first time in its International Monetary Market Division (IMM). Throughout the 1980s, option trading developed quite rapidly. Due to the market's demand for flexible and diverse foreign exchange options, over-the-counter (OTC) trading, primarily conducted between banks, quickly grew. As a result, today's foreign exchange option trading can be divided into two main parts: one is the on-exchange trading conducted within various exchanges, and the other is the over-the-counter trading led by banks. Due to the rapid development of OTC trading, by the early 1990s, OTC trading accounted for more than 80% of the total foreign exchange option trading volume. The foreign exchange option trading introduced in this book revolves around OTC trading.