Dollar/Yen Moves Lead To Windfall Profits/Losses In Currency Options
BANKS
LONDON--The violent move in dollar/Japanese yen over October 7-8, has created "massive windfall profits and losses" among currency options players, say industry sources.
The yen's unprecedented rise meant that out-the-money options positions that were relatively insignificant before the move, were suddenly in play.
"Because the move was unforeseen--not to mention its sheer magnitude--banks that bought short-term protection against a downward blip in the dollar, but were long-term dollar bulls
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