This assignment on option strategies for hedging. The management is considering Option Contract Strategies for the purpose of hedging the foreign exchange risk.

Option Strategies for Hedging Assignment

Bachelor of Science in Mathematics

Polytechnic University of the Philippines

Economics

International Finance : Article Review of European Currency Option

Hartpury University and Hartpury College

Journal of Futures                                    Markets

Derivatives and Risk Management

This article provides an analysis of spread strategies in the derivative market. It explains the concepts of vertical, horizontal, and diagonal spreads, and discusses their risks and benefits. The article also emphasizes the importance of understanding the underlying asset and the option market before implementing spread strategies.

The University Of Newcastle Australia

Finance

Calculus and Analysis

Analysis of Spread Strategies in Derivative Market

This article discusses the calculation of straddle with contract multiplier of £1 per index point using Black School Model. It also explains the difference between straddle and futures hedging strategies and whether the client made a profit or loss. The article cites references from Bingham & Kiesel (2013) and Hull & Basu (2016).

Derivatives

This document explains different options strategies such as Iron Condor, Long Straddle, Iron Butterfly, Short Straddle, Covered Call, and Covered Put. It provides step-by-step instructions on how to build these strategies and their purposes. Real-life examples and option contracts are included.

Options Strategies: Iron Condor, Long Straddle, Iron Butterfly, Short Straddle, Covered Call and Covered Put

This article discusses the collar and straddle option strategies for financial risk management. The collar strategy involves purchasing a put option and selling a call option to protect against price reductions. The straddle strategy involves buying a call and put option simultaneously to maximize profit in fluctuating markets. The article provides practical applications, benefits, and shortcomings of each strategy.

Option Strategies for Hedging Assignment