Input Help for Calls and Puts 

Features

With the help of this matrix, you get an overview of the 4 different possible entries for creating a currency option transaction with your local currency.

 

Transaction type:

 

Underlying (Spot transaction):

Purchase option

Sale option

Purchase foreign currency with local currency

Long Call

Short Put

Sell foreign currency for local currency

Long Put

Short Call

You fix the short/long positions when you enter the transaction type i.e. purchase or sell the option.

You fix the call/put positions in the underlying. There are two possibilities:

· If one of the two currencies is the local currency, the foreign currency is used to decide whether a call or put is involved. Example: Purchase USD, sale DEM, result: USD-Call.

· If both currencies are foreign curencies, the leading currency in the settings table determines whether a call or put is involved (refer to Define leading currency.)

Example:

You want to sell a call in a foreign currency (short call). The following entries are required for this:

  1. Choose transaction type, Sale, in the initial screen.
  2. Enter your Local currency in the Purchase field.
  3. Enter the Foreign currency in the Sale field.
  4. Exercise date, Strike and Premium sale data are further mandatory fields.
  5. Save the Short call you have created.

You can get detailed information via Basic data.