Buy USDSGD Call Option

USDSGD has been trading in a wide range of 1.3400 to 1.4400 since June 2015.

Currently spot rate is at 1.3600. Price is near to lower range and potential for a rebound.

Client can choose to buy a USDSGD call option. By buying a 3 month call option, client only risk the amount of option premium paid.

Option Details:
Buy USD call SGD put option
Strike price: 1.3650
Notional amount: USD500,000
Expiry date: 8Nov2017
Premium in USD: USD5200

Scenario 1:
USDSGD stays below 1.3650 at expiry date 8Nov2017.
Client will lose USD5200.

Scenario 2:
USDSGD trades at 1.4100 at expiry date 8Nov2017.
Client will earn gross profit of SGD22,500.
Net profit will be SGD22,500 - USD5200.

Scenario 3:
USDSGD trades at 1.3700 at expiry date 8Nov2017.
Client will earn gross profit of SGD2500.
But after less of cost of premium of USD5200, this will be a losing trade.

The option can be unwind before expiry date if our view is correct.