I am confused about one thing in trading forex options.
if the spot price of EURUSD in 1.4644 and i open a sell put option at 1.5000 and the expiry for next day.
the sell option is a credit options so i should receive the premium right??
so when will i receive the premium after expiry?
and what if the spot price at expiry is 1.4550 how much will i lose?
You will lose 1.5 – 1.4550 = 0.0450 on the exercise of the put but you get to keep the option premium no matter what, so your loss will actually be 0.04550 – (premium collected)
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