In finance, a foreign exchange option (commonly shortened to just FX option or currency option) is a derivative financial instrument that gives the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date.[1] See Foreign exchange derivative. The foreign exchange options market is the deepest, largest and most liquid market for options of any kind. Most trading is over the counter (OTC) and is lightly regulated, but a fraction is traded on exchanges like the International Securities Exchange, Philadelphia Stock Exchange, or the Chicago Mercantile Exchange for options on futures contracts. The global market for exchange-traded currency options was notionally valued by the Bank for International Settlements at $158.3 trillion in 2005 For example, a GBPUSD contract could give the owner the right to sell?1,000,000 and buy $2,000,000 on December 31. In this case the pre-agreed exchange rate, or strike price, is 2.0000 USD per GBP (or GBP/USD 2.00 as it is typically quoted) and the notional amounts (notionals) are?1,000,000 and $2,000,000. This type of contract is both a call on dollars and a put on sterling, and is typically called a GBPUSD put, as it is a put on the exchange rate; although it could equally be called a USDGBP call.

If the rate is lower than 2.0000 on December 31 (say 1.9000), meaning that the dollar is stronger and the pound is weaker, then the option is exercised, allowing the owner to sell GBP at 2.0000 and immediately buy it back in the spot market at 1.9000, making a profit of (2.0000 GBPUSD? 1.9000 GBPUSD)? 1,000,000 GBP = 100,000 USD in the process. If instead they take the profit in GBP (by selling the USD on the spot market) this amounts to 100,000 / 1.9000 = 52,632 GBP. Although FX options are more widely used today than ever before, few multinationals act as if they truly understand when and why these instruments can add to shareholder value.

To the contrary, much of the time corporates seem to use FX options to paper over accounting problems, or to disguise the true cost of speculative positioning, or sometimes to solve internal control problems. The standard clich?

About currency options affirms without elaboration their power to provide a company with upside potential while limiting the downside risk. Options are typically portrayed as a form of financial insurance, no less useful than property and casualty insurance. This glossy rationale masks the reality: if it is insurance then a currency option is akin to buying theft insurance to protect against flood risk. The truth is that the range of truly non-speculative uses for currency options, arising from the normal operations of a company, is quite small. In reality currency options do provide excellent vehicles for corporates' speculative positioning in the guise of hedging.

Members; 54 posts. Posted 15 October 2009 - 07:32 PM. I like this idea of tracking your cars functions, I just wanted to throw another model your way. I'ts (INNOVA 3100a model) web site(www.CanOBD2.com)It has a USB Cable that can connect to the computer, I would like to know if it. No more missed important software updates! UpdateStar 11 lets you stay up to date and secure with the software on your computer.

Corporates would go better if they didn't believe the disguise was real. Let's start with six of the most common myths about the benefits of FX options to the international corporation -- myths that damage shareholder values. Historically, the currency derivative pricing literature and the macroeconomics literature on FX determination have progressed separately. In this Chapter I argue the joint study of these two strands of literature and give an overview of FX option pricing concepts and terminology crucial for this interdisciplinary study. I also explain the three sources of information about market expectations and perception of risk that can be extracted from FX option prices and review empirical methods for extracting option-implied densities of future exchange rates. As an illustration, I conclude the Chapter by investigating time series dynamics of option-implied measures of FX risk vis-a-vis market events and US government policy actions during the period January 2007 to December 2008. Chapter 2: This Chapter proposes using foreign exchange (FX) options with different strike prices and maturities to capture both FX expectations and risks.

We show that exchange rate movements, which are notoriously difficult to model empirically, are well-explained by the term structures of forward premia and options-based measures of FX expectations and risk. Although this finding is to be expected, expectations and risk have been largely ignored in empirical exchange rate modeling. Using daily options data for six major currency pairs, we first show that the cross section options-implied standard deviation, skewness and kurtosis consistently explain not only the conditional mean but also the entire conditional distribution of subsequent currency excess returns for horizons ranging from one week to twelve months. At June 30 and September 30, the value of the portfolio was?1,050,000.

Note, however, that the notional amount of Ridgeway's hedging instrument was only?1,000,000. Therefore, subsequent to the increase in the value of the pound (which is assumed to have occurred on June 30), a portion of Ridgeway's foreign currency exchange risk was not hedged. For the three-month period ending September 30, exchange rates caused the value of the portfolio to decline by $52,500. Of that amount, only $50,000 was offset by changes in the value of the currency put option. The difference between those amounts ($2,500) represents the exchange rate loss on the unhedged portion of the portfolio (i.e., the 'additional'?50,000 of fair value that arose through increased share prices after entering into the currency hedge). At June 30, the additional?50,000 of stock value had a U.S. Dollar fair value of $45,000.

At September 30, using the spot rate of 0.85:1, the fair value of this additional portion of the portfolio declined to $42,500. Ridge way will exclude from its assessment of hedge effectiveness the portion of the fair value of the put option attributable to time value. That is, Ridgeway will recognize changes in that portion of the put option's fair value in earnings but will not consider those changes to represent ineffectiveness. Aitan Goelman, the CFTC’s Director of Enforcement, stated: “The setting of a benchmark rate is not simply another opportunity for banks to earn a profit. Countless individuals and companies around the world rely on these rates to settle financial contracts, and this reliance is premised on faith in the fundamental integrity of these benchmarks. The market only works if people have confidence that the process of setting these benchmarks is fair, not corrupted by manipulation by some of the biggest banks in the world.” The Commission finalized rules to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act regarding Regulation of Off-Exchange Retail Foreign Exchange Transactions and Intermediaries. The Commission also finalized Conforming Changes to existing Retail Foreign Exchange Regulations in response to the Dodd-Frank Act.

Additional information regarding these final rules is provided below, including rules, factsheets, and details of meetings held between CFTC Staff and outside parties.

This happened to my 1998 Volvo V70 but it is relevant to E39 too, so mod don't remove this thread!!! Which OBD Tool/Model do you recommend?

(Basically the LEAST money for the BEST product) To make a long story short, I have owned an Actron CP9035 for 10 years, just like in this link: But here is the problem: 1. It failed to diagnose the Air Valve problem (OBD P0410) in my 98 Volvo V70. The indy mechanic tool diagnosed it while the Actron tool registers nothing!

Just today, my car mysteriously shut down for 2 seconds, then I crank it and it starts right up, then 2 min later the CEL is on. I plugged the same Actron CP9035 Tool in and sure enough no OBD codes were found. So the bottom lie is I need a new OBD Tool.

WHAT BRAND-MODEL OF OBD TOOL DO YOU GUYS RECOMMEND? I have an actron but am looking at getting this one b/c does CAN/OBDII/EOBDII Memoscan U581 (at Amazon for ~$100 I really like the live CAN features. Another member on here has it and posted live data for pre-post cat troubleshooting / diagnosis. Works on all OBDII cars to boot.:) * Reads live sensors such as wide-band O2 sensors, fuel adaptation, mass airflow (MAF) sensor, ignition timing advance, and lambda readings.

* Reads & clears generic & manufacturer-specific Diagnostic Trouble Codes (DTC). * Retrieves Vehicle Identification Number (VIN) on 2002 & newer vehicles that support Mode 9. * Stand-alone unit without need for additional laptop computer to operate. I just bought the Peake Research code reader and think I'll send it back for one of these. It is a really light weight low tech device, two digit display.

Anyways, SES light is on, work through its criptic way to read codes and nothing, then go to the reset mode and it does not reset, just returns to '--'. Seems like some of these readers are more like the real deal, how do they differ from what the BMW dealers computer set up will do? I have read a bunch of posts about the light weight code readers not being able to do what the computer type can do as far as digging out deeper codes (whatever that means). Very interested in feedback on the ones in this post, I'm in the market. I use an ELM scanner purchased off Ebay. You need a laptop to use it, but then you have a much larger display.

It comes with some freeware, but you can also purchase other software if you prefer. The freeware works fine for reading OBDII codes and clearing them. It also allows you to read live data off the sensors. They usually come with ScanTools freeware version 11.3 or instructions for where to download ScanTools 11.3 off the internet. Warning, later versions of ScanTools (11.4 anb 11.5) are not compatible with these Ebay scan tools, as they added a program to detect that they are not original ELM chips but copycats ones. These scan tools do work with PAID software, as I bought a copy of Palmer Engineering software to gain some more functionality, like freeze frame of sensor data, so I could print it out. For $25, you cannot beat it.

I have the exact one shown here, but I did not buy from this vendor, so cannot comment on him: 05QQptZMotorsQ5fAutomotiveQ5fTools Works fine with any OBDII compliant vehicle from 1996 on. If you don't want to mess with the cable, there are bluetooth versions on Ebay as well.;) 0QQptZMotorsQ5fAutomotiveQ5fTools There are several websites that offer ScanTools 11.3 for download (the ScanTools website only offers the latest 11.5 version).I found it here But I have no idea if this site is safe, so be careful. Up to 1995: OBD-I. Actron Code Reader 9145 will do that (but expensive at $200). After 1996 --->present: OBD-II. Actron Code Reader 9175 will do that for $95.

So what category do transmission codes fall under. The owner of Peake called me back after I told him I wanted an RMA on his 'code reader' that could not read codes and said that the tranny codes are different.

I want to read ALL the codes, tranny, ODB I II, etc and then I'll decide which ones will kick in a visit to my indy or a BMW dealer. Do you know of a reader that can handle tranny codes too? In my case, a failed ALT kicked in trans safe mode, the alt was replaced, all is good, shifted fine when the alt went and still shifts great but apparently there is a code stored somewhere that has to be reset with a different tool. Go figure, lets make these cars complex! I cant imagine the 2004+ 5-series with another 10-15 servos and computers on board. I just bought the Peake Research code reader and think I'll send it back for one of these. It is a really light weight low tech device, two digit display.

Anyways, SES light is on, work through its criptic way to read codes and nothing, then go to the reset mode and it does not reset, just returns to '--'. Seems like some of these readers are more like the real deal, how do they differ from what the BMW dealers computer set up will do? I have read a bunch of posts about the light weight code readers not being able to do what the computer type can do as far as digging out deeper codes (whatever that means).

Very interested in feedback on the ones in this post, I'm in the market. Mine worked perfectly on an '03 530i. I believe it reads BMW codes, not OBDII. Here's a link to the manual Doesn't look like it reads transmission codes but I'm too tired to read through the entire thing right now. Seems like it reports on a bunch of stuff.

Mine did a reset as well as the oil and service resets no problem. I suppose it's good for what I need it for. I guess I'm still learning about all the types of codes our BMW's throw off, what does 'OBDII' stand for?

I think you are right, as long as you are looking to reset the oil and service indicator lights, which has some value in and of itself, and not trying to do your own diagnostics on the SES light, the Peake unit probably is good. The owner of Peake said a Chinese company stole their software and that is what the $103 tool is using (#$@!). If they did hack it, we should all boycott it, we all lose in that game. It appears / appeared on first read that some of the units in this thread (I paid $154 for the Peake) gave you all the codes including the OBD I and II, tranny, etc and reset your service / oil lights. Maybe I'm incorrect on what to expect these tools to do. I do have a notebook so a software solution with a cable is ok for me.

Anyways, always learning and I guess, that is part of why I like these cars. Learning and loving to drive them too!

Quick update. Software and interface arrived tonight so I have not had a chance to really dig into it as yet. The install was a snap and it connected right away to my wife's S40 which had a check engine light.

I was able to read the pending code ( something about the coolant temp sensor reading too low) and reset the CEL. Also was able to connect to my rental (2009 Cobalt).

Corporate Confidential Pdf Free Download. It only supports OBDII. Unfortunately, I cannot test it on my car since it is in the body shop (rear end got rearranged). I will keep you updated. If you want to test it on your car let me know. We can work out a time and place.

I tried attaching a screen shot of it connected to the Cobalt. Quick update. Software and interface arrived tonight so I have not had a chance to really dig into it as yet. The install was a snap and it connected right away to my wife's S40 which had a check engine light. I was able to read the pending code ( something about the coolant temp sensor reading too low) and reset the CEL. Also was able to connect to my rental (2009 Cobalt). It only supports OBDII.

Unfortunately, I cannot test it on my car since it is in the body shop (rear end got rearranged). I will keep you updated. If you want to test it on your car let me know. We can work out a time and place. I tried attaching a screen shot of it connected to the Cobalt. So the software only supports OBD II and the Peake tool I purchased does not. If I understand this correctly, the software should be able to read the tranny codes but not reset the service and oil, sounds a little strange to me.

I'm in ME, would love to try it but you look like you are 3000 miles away! I'm one hour from Boston, so the 'city' part of Maine (7 minutes to the NH border). But I'm told that Maine is now the most rural state in the entire 50, even including Alaska. If you go up north 6-7 hours from me, you enter 'townships', yes, small blocks of land that if you squat on them for 7 years, they are yours (as long as the paper co's dont kick you off first). And the number of people per sq mile is less then Alaska! Goes to show you what some crude will do the artic tundra! Best time to come up here is mid August (absolutely perfect weather) or fall, nothing like it.

I don't think that your Peake reads the BMW propietary codes, just OBD II. That's why is not giving you the fault code to your SES and therefore cannot reset it. Ok, so more information. Talked with Dan Peake today at length, his code reader is one of the only if not the only inexpensive readers that DOES read BMW proprietary codes. It does not read OBDII codes which apparently are more generic codes used by many car mfg. To meet federal emission regulations.

For some reason, BMW's standard proprietary codes are only one set of BMW specific codes (anybody chime in with more info please), the transmission control module and possibly the DSC control module can also throw codes that only the more expensive BMW dealer computers can read. Per Dan, there is a Chinese knock off to his device that stole his units BMW code reader software (nice of them). So wondering if anyone knows of a computer / code reader that can read not only BMW proprietary codes (like Peake) but tranny and possibly DSC codes as well.

Just found a company, Bavarian Technic that appears to have pretty much what the BMW dealers have for only $237 for a system that will read 3 VIN numbers (ie. Restricted for DIY), here are basics, anybody used this product? What cars does it work on? 2005-2009 BMW 1 Series 1996-2009 BMW 3 Series 1996-2008 BMW 5 Series 2004-2008 BMW 6 Series 1994-2008 BMW 7 Series 2004-2008 BMW X3 1999-2009 BMW X5 2008-2009 BMW X6 1996-2002 BMW Z3 2002-2009 BMW Z4 2000-2003 BMW Z8 All BMW M models Mini Cooper R50 & R56 Looking for Porsche? Please see Durametric. What does it do?

The tool accesses the electronic control units in your car to: Read and clear diagnostic fault codes Display shadow faults and soft faults Display and record real-time actual values Activate components of the car for troubleshooting Reset service reminders Reset condition-based service indicators Send special commands to control units Show ECU information Access the latest BMW DCAN systems for 2007+ models What systems does it work on? Engine Airbag ABS Transmission Alarm Central electronics Heating & A/C And much more. *Not all features are supported on all modules or vehicles. See our Model/Feature Matrix for specific coverage.

How does it work? Our product is a hardware and software tool that plugs into your Windows PC's USB port (check system requirements). Once plugged into the car, the tool is capable of communicating with the different system control units in the car. Im surpirsed nobody has mentioned the BMW GT1 reader, I think it is one of the few that can read the BMW codes specifically. Most OBDII readers will only scan for emissions code (which is what throws the SES light), so you will get boring stuff like catalytic converter and fuel vapor codes.

Agree, there appear to be only a few that read BMW proprietary codes, Peak, Baum, the one above, then you have another breed that read other BMW control modules (ie tranny) like the BMW computer does. The least expensive one I found is the Bavarian Technic system. I have some codes thown that the Peake does not read so thinking about getting the Bavarian Technic, I really want one that does it all. The OBD II codes are general automotive federally mandated emissions codes, like you said, boring!

FYI: P0xxx is a generic code (all OBD II) P1xxx is a manufacturer specific code The above are emissions related codes. Most code readers read both (Actron mentioned above) The 'next step up' are readers that read OBD I and II. Communicate over the CAN-bus to monitor and activate controller modules. CAN (Controller Area Network) is an automotive standard and is not BMW-specific.

Details on the CAN protocol can be found on the web. The data pathways (physical wiring, generally) used by the CAN are sometimes also referred to as the CAN-bus.

The control modules (in your/our BMWs) use the CAN-bus to communicate with each other. Examples would be Autoenginuity, BMW GT1, ediabas/INPA, Carsoft, etc. These typically require software AND a connection cable (hardware) with chips/coding to allow the software on your laptop to communicate through the cable to/with the modules on the CAN-bus. Most require a serial port on your laptop to connect the cable to. There are problems with newer laptops only having USB ports and people trying to use a USB to serial port adapter with these cables/software. LOTS more information on how these operate, troubleshooting, tips & tricks, etc.

On this BMW Diagnostics sub-forum. I have just started to use PA Soft 1.3.6 two days ago to clear some codes. It does alot more than clearing codes but too bad I have no idea on how to read all the codes and stuff. You can clear codes, reset units, read/write.bin files.other stuff that I dont understand.

Heres some pics of the scan I first did and there was alot of errors that didnt show up with a regular OBDII scanner. The only 2 errors that came up when I used a regular OBDII scanner are the 2 error in the DME. Well, after I cleared the codes everything is A OK.

If anyone know where I can get some instructions or some understanding of the codes please let me know. Anybody use any of the scan tools by Innova/Equus?? I used the 3100 sold at WMart $100 to clear my P0740 code to allow passing state insp test. Then I returned it b/c I want a higher model that also includes reading/clearing SRS codes (ABS too but I'm only interested in the SRS) since I have that light on. Their 3150 & 3160 ($150 & $200) models has that feat. Anybody use any of the scan tools by Innova/Equus?? I used the 3100 sold at WMart $100 to clear my P0740 code to allow passing state insp test.

Then I returned it b/c I want a higher model that also includes reading/clearing SRS codes (ABS too but I'm only interested in the SRS) since I have that light on. Their 3150 & 3160 ($150 & $200) models has that feat. I have the Innova 3100, the Peake and GT1. The most used are first 2.

I also own another car. GT1 is used very seldom, only when playing with it or IF the other 2 don't show anything if the CEL is on, which has never happened. Laptop is bulky compared to the other 2 (GT1) and I'm not compelled to mess around with the car's settings. I've got the ELM327 Bluetooth, the Autel MS300 above, the Peake, and a Laptop running INPA, DIS and GT1. Have NCS installed but too afraid to use that one. For simple troubleshooting on the BMW, I go with the Peake reader.

For simple live data on any car, I go with the ELM327 streaming to an Android Tablet running Torque App. For occasional live data when something doesn't feel right, I run the GT1. Bought the Autel MS300 recommended above and used once to see what I can do. For the price, the ELM327 does a better job than Autel for 1/2 the price (unless you include the cost of the Android tablet). Although the bluetooth connection is a bit flaky at times. Anyone know what the INNOVA 3100 can do that the MS300 or Peake can't? Seems for the price of the Innova, a Peake for the BMW specific and a MS300 for BMW and most other cars is sufficient.

My link above shows the comparison chart for the diff Innova models. I personally wouldn't be interested in a BMW only tool and although neat techy thought on the SW ops, I don't want to lug a laptop or IPad around just to read and/or erase codes.

I've narrowed my choices down to the Actron 9580 (what Autozone uses) or the Innova 3160b (latest). I think the Innova has the edge for hopefully being able to give me insight into my SRS light. Others I read are interested in the ABS feat although not all inclusive for all cars.

I think the Actron has ABS but I don't think it has the SRS feat. Its $179 while the Innova is $199 (Amazon). Anyone know what the INNOVA 3100 can do that the MS300 or Peake can't? Seems for the price of the Innova, a Peake for the BMW specific and a MS300 for BMW and most other cars is sufficient. There are better models than the 3100 from Innova.

What Innova can do that Peake can't, is connect the scanner to the computer, and go online to the Innova site, where it can give you a diagnostic with a solution for the pulled code and car specific model. No need to search forums to diagnose, just to find help to DIY. Innova site (http://innova.com/). But the big Ah ha gotcha is that innova charges for the detailed online diag solutions.that's what I hear most complain about on a lot of blogs and reviews.

I think around $15 ea (per pull). I don't care about that though, I plan to do what most do and that is google the code for info for free!:-) I haven't had that issue (to pay). I just registered when I purchased that tool, and once connected, I received the detailed info for the specific code I had (last year). Haven't had any other issues since, so I don't know if it stil works or not. That would be bad to charge you for each code.

See also: - Where to get a cheap OBDII DTC scanner (1 ((2 (or a better scanner (1 (or the best diagnostic tools (1 ((2 ((3 (http://forums.bimmerforums.com/forum/showpost.php?p=18559699&postcount=2)).