My previous contract matured today. Being short the NZD against the USD turned out to be a a reasonable investment as the USD traded sideways against the NZD during the contract period. As a result I kept the premium without either having the contract exercised against me or having a repreat of last month's situation where I would have been better off simply buying the NZD outright.
I have entered into a new FX contract:
Currency pair: USD/NZD
Strike rate: USD1.00 = NZD 0.6200
Spot rate: USD1.00 = NZD 0.6436
Annualised premium: 7.89%
Calculation date: 30 July 2009
Maturity date: 31 July 2009
I have gone further out of the money for a lower return as I intend using this money as part of an investment in my current employer next month and would prefer not to be hit.
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