Latest forex analysis - 22/10/07

[forextrader]

Read the latest forex analysis:


G7 Statement focuses on China, giving USD weakness a theoretical green light.

"The G-7 produced little in the headlines. Therefore, the knee-jerk reaction to the statement, which focused on the Chinese Yuan and the unified call for China to allow its currency to strengthen more rapidly, was that this gives a green light to further USD weakness. "


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[Carol]

The delta of a deep out-of-the-money forex option will be closer to zero, the delta of an at-the-money forex option will be near .5 (the probability of exercise is near 50%) and the delta of deep in-the-money forex options will be closer to 1.0. In simplest terms, the closer a forex option's strike price is relative to the underlying spot forex rate, the higher the delta because it is more sensitive to a change in the underlying rate.