Benlamnz
24-10-2004, 09:20 PM
I am thinking about purchasing a 12 month USD option to hedge against possible a fall of the NZ dollar. I want option, not CFD, because I want to limit my potential loss to the premium I paid, instead of having to physically deliver on the contract when its due. ANyone know any big banks who offer these options? Mind you I am no big fish, or at least, am not trying to make a killing out of currency trading. All I want is to hedge the amount of NZD I have in term deposit, since with interest rate at 6.5%, I can pretty much cover the premium of the option anyway? Last time I checked the premium for a 12 month forward is 0.028, which means option writers are pricing in NZD at 0.66-ish USD.
Any comments, especially where to buy these options from are mostly welcome. Cheers
Any comments, especially where to buy these options from are mostly welcome. Cheers