Wednesday, May 27, 2009

USD/NZD FX contract entered into

My previous FX contract matured today. Being short the NZD against the USD turned out to be a bad call as the USD depreciated sharply during the contract period. I would have been better off holding the NZD. However, a combination of setting a strike price which was out of the money and the premium received means that in USD terms, I actually came out ahead on the trade (although not by much).

I have entered into a new FX contract:

Currency pair: USD/NZD
Strike rate: USD1.00 = NZD 0.6100
Spot rate: USD1.00 = NZD 0.6214
Annualised premium: 14.265%
Calculation date: 26 June 2009
Maturity date: 29 June 2009

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