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    ue of the options is whatever the holder will get by actually exercising the contract. If the holder will gain nothing by exercising the option then t
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    An option is a contract to that gives the holder the right to buy or sell currency at a pre-determined price at a specific price. The holder of the contract has the right to exercise the option but is not obligated to. Options are used as a hedge in FOREX transactions; they are frequently used by companies that trade in oversea goods to reduce their risk.

    Options come in two different flavors. Call options give the contract holder the right to buy the currency. Put options give the contract holder the right to sell the currency to someone else.

    When the contract expires the actual value of the options is whatever the holder will get by actually exercising the contract. If the holder will gain nothing by exercising the option then th

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    ntract has the right to exercise the option but is not obligated to. Options are used as a hedge in FOREX transactions; they are frequently used by companies that trade in oversea goods to reduce their risk.

    Options come in two different flavors. Call options give the contract holder the right to buy the currency. Put options give the contract holder the right to sell the currency to someone else.

    When the contract expires the actual value of the options is whatever the holder will get by actually exercising the contract. If the holder will gain nothing by exercising the option then t

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    panies that trade in oversea goods to reduce their risk.

    Options come in two different flavors. Call options give the contract holder the right to buy the currency. Put options give the contract holder the right to sell the currency to someone else.

    When the contract expires the actual value of the options is whatever the holder will get by actually exercising the contract. If the holder will gain nothing by exercising the option then t

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    o buy the currency. Put options give the contract holder the right to sell the currency to someone else.

    When the contract expires the actual value of the options is whatever the holder will get by actually exercising the contract. If the holder will gain nothing by exercising the option then t

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    ue of the options is whatever the holder will get by actually exercising the contract. If the holder will gain nothing by exercising the option then the actual value of the option is zero. The value of the option at any other time during the contract is what is called the intrinsic value, that is the value if the holder were to exercise the option at that time.

    The intrinsic value is partially based on the set price of the contract, which is also known as the “strike price”. A call option has an intrinsic value if the current price of the currency is higher than the strike price. This would allow the contract holder to buy the currency at less than the current value and then re-sell it for a profit. A put option has an intrinsic value if

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