An Italian importer will be paid $1 million in three months (March). He must decide whether to sell $1 million forward or to buy currency options for that amount.
The current market prices are as follows:
Exchange rates: Spot $/€ = 1.10
Three-month forward: $/€ = 1.11
Call euro March 110 U.S. cents: 1.5 U.S. cents per €.
Put euro March 110 U.S. cents: 1.0 U.S. cents per €.
What are the differences between the strategies of selling currency forward and buying currency options?

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The Answer of An Italian importer will be paid $1 million in three months (March). He must decide whether to sell $1 million forward or to buy currency options for that amount.
The current market prices are as follows:
Exchange rates: Spot $/€ = 1.10
Three-month forward: $/€ = 1.11
Call euro March 110 U.S. cents: 1.5 U.S. cents per €.
Put euro March 110 U.S. cents: 1.0 U.S. cents per €.
What are the differences between the strategies of selling currency forward and buying currency options?

An Italian Importer Will Be Paid $1 Million in Three