At the money Forex option

[Ardyne]

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

 

[wayneL]

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

 

[wayneL]

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.

 

[Ardyne]

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