Cost of currency options - How many basis pts does it cost

T

tradertt

Hi guys,

Would just like to check:

Assuming USD/SGD is currently at 1.4135

How much does it cost me to buy a PUT option at 1.4235 1 month strike?

In basis pts? or many in dollars?
 
Where do you trade options on that pair? What type of put is it (american/european/etc)? What is the interest rate on SGD?
Check the vol of that pair. The higher the vol the higher the price. CBOE.com has an option calculator.
 
I know nuts about currency options but I was thinking of interactive brokers.

What would the cost be I wonder? I heard they have currency options traded in PHIL
 
You can go to PHLX's site to check the quotes, but they only quote the majors. No SGD. Might want to try to se the Yen as a substitute
 
I have a problem. Actually what i need is that if USD/SGD falls below 1.4000 for example in a month, Euro style (on expiry), I need to ensure I can sell USD/SGD at 1.4000 which is why I am looking to buy a put for USD/SGD at 1.4000 for 100k USD


Is there anyway or instruments that can do that?

Thank you
 
That's what a put does. Did you check saxobank, but their pricing may not be fair? Is this for trading or for business? If it is for trading I would stay away from anything non liquid
 
I know of no exchange traded option. In Europe we have a variety of FX dealers in vanilla and exotic options. The option would be priced in SGD.

Saxo offers trading in spot, but not USD-SGD options.
 
You can do a USD/SGD Forward contract. customhouse.com has flexible forward contracts that let you lock in a rate now and that allows you to use that rate for up to a year. Only need a 10% margin deposit to get it.
 
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