I’m in an international finance class and I need to write a paper about the yen and whether I would recommend purchasing futures or options in the yen. I’ve read all the chapters in the text and looked up articles and I still don’t get it. If the exchange rates are changing and the dollar is worth less than the yen in a month than it is now, how can you profit? Should you buy or sell futures if I think the yen will appreciate? I need someone to ELI5.
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Perhaps just from a trading perspective you are stuck on the idea that you can buy and sell both put and call options.
Your reading might also refer to the two purposes of futures and options speculation and hedging. If you are trading for client maybe they might be looking to get rid of price risk associated with changes in exchange rate.
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