The document outlines two financial strategies involving EURUSD options. The first strategy is a short-term tactical call to buy EUR50 million worth of 2-week expiry European Style EURUSD Calls at a 1.40 strike for 6 basis points. The rationale is based on the current bullish price action of EURUSD, low implied volatility, and the positioning of speculators. The second strategy is a long-term position for a stronger dollar, involving a 1-year expiry European style digital binary option on EURUSD, struck 5% below the spot at 21% of payout. The strategy is based on expectations of diverging central bank policies and low FX volatility.
doj/DataSet10/EFTA01453871.pdf
{"key_people":["Yellen"],"document_type":"financial","key_organizations":["ECB"],"reference_numbers":["DB-SDNY-0111716","SDNY_GM_00257900","EFTA01453871"]}