What is a disappearing dollar-buying reserve?!
The dollar-yen exchange rate is approaching155 yen,155yen has an option-related knockout price(rights expiration price)circulating as a possibility. There has long been a history that a modified option known as a reverse knockout option(hereafter,RKO)has helped fuel the gyrations in the dollar-yen market, and this time, such trading is also occurring.The “disappearing dollar-buying orders”is the actual practice of options trading and its implications for the future of the dollar-yen exchange rate.
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