Foreign Exchange Options
An international guide to
options trading and practice
Second edition
Alan Hicks WOODHEAD
PUBLISHING LIMITED
Since the first edition of
Foreign Exchange Options in 1993, trading in foreign exchange options has undergone rapid
expansion and now accounts for a daily turnover of some $100 billion world-wide. This
revised and expanded second edition takes into account recent changes in both market
practice and regulatory requirements and contains many new explanatory diagrams and
practical examples.
- The
benefits of using options to hedge foreign exchange risk
- Detailed
examination of both the OTC market and the main exchange listing
- Specific
coverage of pricing, trading risk and market practice
- Trading
and hedging practices of major international banks
- Expanded
analysis of 'exotic' options
As with the first edition,
the emphasis is on practicality, taking the reader through the basics, clarifying jargon
when and where appropriate. This book will be invaluable for accountants, auditors,
experienced practitioners and those entering the world of currency options for the first
time.
About the author
Alan Hicks began his banking
career with Royal Bank of Canada, with subsequent moves to Fidelity Bank, Chase Manhattan
and Standard Chartered Bank. In 1996, Alan formed his own company - Options Training and
Consulting Limited - offering advice, training, education and support in all aspects of
options. Also in 1996, he entered into an alliance with Inventure Ltd and conducts all UK
training and consulting business under the Inventure Ltd name.
Contents
The basics
The marketplace
Options characteristics
Put-call parity
Option combinations
Option pricing
Option trading risk
Hedging and trading a
portfolio of options
OTC market practice
Management control of active
portfolio
Regulatory control
Terms and conditions for
covering foreign exchange options
Counterparty credit risk
Exotic options and the future
Glossary
Appendices
544 pages
