Basic FX Question
Posted: December 31st, 2005, 9:43 pm
I have a very basic Question regarding FX option.Let S be spot price of currency and K be strike priceIf we have USD/MXN option with USD call and MXN put. We will exercise it if S>K where S is spot of MX and K is strike in MXIf we have JPY/EUR fx option let say JPY call and EUR put. When this option will be exercised?? Will it depend on what currency strike price is ??