Suppose we have an FX option with the underlying FX rate $X^{FOR/DOM}$ and suppose we used a Black like formula to get the price, which is given in domestic currency. How can one simply convert the premium in the domestic currency to a premium in the foreign currency without having to reprice the option?



1 Answer 1


You simply take the spot fx rate and convert the domestic premium into the foreign currency. It works with the option price exactly the same way as with the price of any other asset.

  • $\begingroup$ @user56787 see here for a coded example. $\endgroup$
    – AKdemy
    Aug 24, 2021 at 21:06

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