Which is the most popular currency contract in the Indian market?
Answer
Answer
Of course, the most popular contract is the USD-INR pair because that is the exposure that businesses and importers are trying to hedge. It is a European option that is quoted in INR terms. Unlike USD/INR futures which are available for 12 months forward, the options contracts are only available for 3 months forwards. Every contract will have 25 strikes i.e. 12 ITM, 12 OTM and 1 ATM strike.