Euro-Dollar Puts Reach Highest Level in Year on Greece
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Demand for options that protect against a drop in the euro versus the U.S. currency is at the highest level in more than a year as the European Union struggles to contain the sovereign-debt crisis.
The premium for euro three-month put options granting the right to sell the currency against the greenback reached 2.58 percentage points today over calls, which allow for purchases. That’s the most since June 2010 on an intraday basis.