What are the different types of currency options contracts? Explain how the buyers and the sellers of options benefit from the option deals. Write notes on: (a) Direct and indirect quote (b) Spread...

What are the different types of currency options contracts? Explain how the buyers and the sellers of options benefit from the option deals.

Write notes on: (a) Direct and indirect quote (b) Spread between buying and selling rates (c) Forward rate differentials (d) Currency arbitrage in spot and forward markets