Question

Recommend to investors whether they should buy or sell futures or options in Canadian currency. Please support your recommendation with calculations.

Answer 1

Canadian currency is one of the most strongest currencies in the Global market which has been continuously been strong and it has maintain a high level of transparency and it is highly strong if its past trends has to be seen against the United States dollar or European euros so it can be seen that the performance of Canadian currency has been relatively very strong in comparison to major currencies of the world and it has established itself as one of the very good currencies of the develop market who has shown continuous strong performance due to continuous growth of the domestic industry.

I personally feel that I should be Buying the Canadian futures and I will be buying the options through call options on the Canadian futures and the options will be helpful in gaining against movements of Canadian Dollars against United States dollar because I would be expecting the appreciation in Canadian dollars against most of the major developed countries foreign currency and I would be looking for an appreciation in Canadian dollars against them.