Options on currency futures

Discussion in 'Financial Futures' started by ForexForex, Aug 27, 2009.

  1. ForexForex

    ForexForex

    I have never traded options on currency futures so I have a question:

    Below is a quote for the Sept 0.92 Call option for the CAD.

    CAD - Futures Option - SEP09 - 0.92 - CALL - GLOBEX - USD - 6CU9 - Bid 0.0067 - Sell 0.0072

    To buy it will cost $720.00 and break even is 0.9272 for the CAD future contract. If the CAD future goes to 0.9300 at expiration then the option is worth $1000 - for a $280 profit. Is this correct?
     
    #1     Aug 27, 2009
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  2. dawgolfer

    dawgolfer

    Correct...less commission...
     
    #2     Aug 27, 2009
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  3. pengw

    pengw

    Make sure the settlement price is still 0.9300, which you will get 30 minutes after futures settles.
     
    #3     Aug 30, 2009
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