Tuesday, September 27, 2011

AUD/HKD FX contract

Yesterday I entered into an AUD/HKD FX contract - essentially writing a put option on the AUD.

Here are the details:

Prevailing spot rate: 7.5578
Strike price: 7.5578
Settlement date: 26 October
Fixing Date: 25 October
Implied annualised interest rate: 24.5775%
Break even if the option is in the money: 7.40815
Absolute return if the option is out of the money: 2.02%

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