# At the money Forex option



## Ardyne (21 October 2010)

Can anyone out there look up the price of a 6 month (or there abouts) ATM put option for the AUD against USD to protect about $100,000.00. Got friends who import and they do all their currency exchanging thru NAB. Just want to look into some stuff.

Had a look at CBOT but not 100% sure im working it out right.

Thanks


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## wayneL (21 October 2010)

Ardyne said:


> Can anyone out there look up the price of a 6 month (or there abouts) ATM put option for the AUD against USD to protect about $100,000.00. Got friends who import and they do all their currency exchanging thru NAB. Just want to look into some stuff.
> 
> Had a look at CBOT but not 100% sure im working it out right.
> 
> Thanks




A march ATM USD/AUS contract is about $4,500 

http://barchart.com/futures/options/A6H11


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## wayneL (21 October 2010)

Just a thought; If your friends need a six month hedge, it would probably be better to go to the June option.

It's only <$300 more, but if the exchange rate doesn't deviate too far from ATM, they will be better off due to less theta.


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## Ardyne (21 October 2010)

wayneL said:


> Just a thought; If your friends need a six month hedge, it would probably be better to go to the June option.
> 
> It's only <$300 more, but if the exchange rate doesn't deviate too far from ATM, they will be better off due to less theta.




thanks a lot


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