Daily turnover in FX options is over U.S.
$ 300 billion*, but many fundamental
facts about this huge and liquid market are generally unknown. FX
Option Performance offers a unique and practical guide to
option trading. Written by three experts in the FX market, this
essential resource has the courage to report how much these contracts
have really made or lost throughout history.
The book is unique in offering both a practical guide to option trading
alongside a historical look at how options performed in different
markets, to help investors and hedgers alike make more informed
decisions.
Not overly technical, the book is an accessible resource for anyone with
an interest in this area, showing investors where to look for value and
helping corporations hedge their FX exposures. FX Option
Performance begins with a quick and practical introduction to the FX
option market, and goes on to determine, in rigorous detail, what value
different options have delivered to their owners since the market began.
It includes:
-
An examination of the historical premiums and payoffs for all liquidly
traded FX options
-
A detailed evaluation of which options are generally overvalued and
which are undervalued
-
An analysis on emerging market FX options which reveals they have been
surprisingly cheap in many cases
-
A review of systemic option trading strategies, seeing what has worked
and what hasn’t
* BIS 2013
