Options on foreign exchange

A comprehensive guide to the world's largest financialmarket Foreign exchange is the world's largest financial market andcontinues to grow at a rapid pace. As economies intertwine andcurrencies fluctuate there is hardly a corporate entity thatdoesn't need to use options on foreign exchange to hedge risk orincrease returns. Moreover, currency options, both vanilla andexotic, are part of standard toolkit of professional portfoliomanagers and hedge funds. Written by a practitioner with real-world experience in thisfield, the Third Edition of Options on ForeignExchange opens with a substantive discussion of the spot andforward foreign exchange market and the mechanics of tradingcurrency options. The Black-Scholes-Merton option-pricing model asapplied to currency options is also covered, along with anexamination of currency futures options. Throughout the book,author David DeRosa addresses the essential elements of thisdiscipline and prepares you for the various challenges you couldface. Updates new developments in the foreign exchange markets,particularly regarding the volatility surfaceIncludes expanded coverage of the currency crises and capitalcontrols, electronic trading, forward contracts, exotic options,and moreEmploys real-world terminology so you can a firm understandingof this dynamic marketplace The only way to truly succeed in today's foreign exchange marketis by becoming more familiar with currency options. The ThirdEdition of Options on Foreign Exchange will help youachieve this goal and put you in better position to make moreprofitable decisions in this arena.