This episode explains how options contracts work, using a simple example involving a flight ticket first and currency options next. The episode describes the concept behind options and the positions of call buyer, call seller, put buyer, and put seller.

This episode introduces derivative securities and discusses their use. Next, forward and futures contracts are explained, using currency forward and futures contracts. Key characteristics of forward and futures contracts are compared and contrasted.

This episode discusses key factors that affect exchange rate movements, such as interest rates, exchange regimes, demand and supply for currencies, and investor expectations. It provides a way to think about the many factors that affect exchange rates.