The delivery date is then calculated from the expiry date in the same way as the spot date is calculated from the horizon date. For a trade with time to expiry of y months, the expiry date is found by first calculating the spot date, then moving forward y months from the spot date to the delivery date.
Why do we use FX Options?
If the delivery date is a non-business day or a US holiday, move forward until an acceptable delivery date is found. Finally, calculate the expiry date using an "inverse spot" operation; e. If one leg of the currency pair is a non-deliverable currency, the expiry date must be a business day of that currency.
For a trade with time to expiry of z years, the expiry date is found by first calculating the spot date, then moving forward z years from the spot date to the delivery date. There are two special cases involving trades that take place around the end of the month and we are trading in month multiples.
One defines "target month" to lie x months forward from spot if time to expiry is x months; e. Jewitt, Giles FX Derivatives Trader School.
Bitcoin holders expect high volatility as roughly 100,000 BTC options contracts expire Friday
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