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instruments in interest-rate, currency and ... - Volksbank AG

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The structure for the importer:The structure for the exporter:Ratio-spread optionThis is also a zero-cost st<strong>rate</strong>gy that arises from the comb<strong>in</strong>ation of the purchase/sale of call options <strong>and</strong> thesale/purchase of put options. Of course, the value amounts of both options vary here. The fundamental ideahereby is the hedg<strong>in</strong>g of a transaction <strong>and</strong> the specification of a sale price at which a potential future transactionor the total volume of a period can be settled. The concluded underly<strong>in</strong>g prices can serve as the calculationbase for the year as a whole.There are two possibilities.Full hedg<strong>in</strong>g:The purchase of the entire amount on thehedg<strong>in</strong>g side; simultaneously, an even largeramount is sold on the risk side to f<strong>in</strong>ance theoption.Partial hedg<strong>in</strong>g:The purchase of a partial amount on the hedg<strong>in</strong>gside <strong>and</strong> simultaneous sale of a larger amounton the risk side.44

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