Vanilla Currency Options: Trading, Hedging and Risk Management

By Jay Hawk and Julie Hawk

Vanilla Currency Options: Trading, Hedging and Risk Management (Volume I)

Master the calls and puts that make up the heart of the currency options market

Vanilla options, the standard calls and puts, account for the great majority of currency options trading. Understanding them thoroughly is the foundation for every trading and hedging strategy that follows. This first volume of Jay and Julie Hawk's two volume series explains them in depth, with all examples recalculated at current GBP/USD market levels.

Inside you will learn: The language of currency options, including intrinsic value, time value and the difference between American and European exerciseWhere currency options trade, from the over the counter bank market to CME Group and online brokersHow the Garman Kohlhagen model prices options, how premiums are quoted and how volatility, risk reversals, skews and smiles workHow professionals manage an options portfolio with delta, gamma, theta, vega, rho and phi, including the hidden danger of strike risk at expiryTwenty trading strategies, from single option positions to spreads, straddles, strangles, butterflies and condorsHow to hedge long and short currency exposures with purchased options, range forwards, participating forwards, synthetic forwards and covered option writingHow to look inside structured products such as dual currency deposits and pivot forwards before you buy themWith dozens of new charts and worked examples, a full glossary and an index, this book is written for corporate treasurers, traders, investors and anyone new to the options desk.

About the authors: Jay and Julie Hawk have more than 40 years of combined experience in the financial markets. Julie managed currency options portfolios for major international banks and trading firms and was a vice president in charge of currency options sales. Jay traded options on the floors of the Chicago Board Options Exchange and the Chicago Mercantile Exchange.

Continue with Volume II, Exotic Currency Options, which builds on this foundation.

• Format: Paperback
• Language: English
• ISBN: B0HQYG2XBW
• ISBN13: 9798141019630
• Release Date: November 2026
• Publisher: Independently published
• Length: 106 Pages
• Weight: 0.34 lbs.
• Dimensions: 9.0" x 0.2" x 6.0"