Speculation with currency options: Calandra Panagakos works…
Speculation with currency options: Calandra Panagakos works for CIBC Currency Funds in Toronto. Calandra is something of a contrarian — as opposed to most of the forecasts, she believes the Canadian dollar (C$) will appreciate versus the U.S. dollar over the coming 90 days, and is willing to speculate based on her contrarian view. The current spot rate is $0.6750/C$. Calandra may choose between the following options on the Canadian dollar: Option Strike Price Premium Put on C$ $0.7000 $0.00003/S$ Call on C$ $0.7000 $0.00049/S$ (1a). Should Calandra buy a put option on Canadian dollars or a call option on Canadian dollars?
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