Journal Article

Currency option markets and exchange rates: a case study of the U.S. dollar in March 1995


Abstract: Some market observers attribute the dollar's recent drop against the mark and yen to a type of currency option known as the knockout option. Although knockouts did contribute modestly to the dollar's fall, their full impact was felt to a much greater extent in the option markets.

Keywords: options; Foreign exchange rates; Dollar, American;

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Provider: Federal Reserve Bank of New York

Part of Series: Current Issues in Economics and Finance

Publication Date: 1995

Volume: 1

Issue: Jul

Order Number: 4