Hedge funds are increasingly using currency options to bet on gains in the South Korean won and Chinese yuan following news of a US-Iran ceasefire, which has lifted risk sentiment and pushed oil prices lower, according to a report by Bloomberg.
The report cites data from the Depository Trust & Clearing Corp as showing that options trading for both currencies versus the US dollar hit one-month highs on Wednesday, with bullish positions dominating. Call options – profiting from currency gains...
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