Question

With the expertise that you have gained in your International Finance Class, you are contemplating becoming a fx trader. You want to speculate on a particular currency (Mexico). What is a better choice for speculating futures contracts or options contracts?

Answer 1

Solution The speculafo Pn tictuoe makete can be reffered Commuuial Os non commeral traders CommeaCial trados ug fts na ven tammochly hehin Popoge whesos non Commesuial ouonts orghen Comnod Aon hda dont aonthe undelyng a8ets ar fts finautial euvalat buf hold postions only in ftess Contrack Traders & fhuestes altcay took ts neeu to Price movemtnt of acin ths cay ate on price movemants of undevNgng gold futsts to capitaliga futss to capitalige can tse futaos to gecd- they puulare on daontan adhile tradas Can piadha ase nteard asts. 2nvefors can hgh parcing The greulatas com Cn only fn Price apeciation t naar fntend to take delveryof under tying commadely Hatares Firfer raton dlauguy Thay e ophent to speculale ntaimaten dangong fctrere price. cchin mveters can tade futrae contas, the ophon dola dge sifalde misk hHo optens&futeo In paakdas, uetoue pesite peculale Aodge auonisWhg of emdes lyg man of fetere price. the varianceaf Investors ue to to pecubte On adrestbrg fer unde ratio withat Can't be utd to civeop timal tho emulate Staddlk to tonte ophons to speculate on on valiana& Poton that emudate mean.