I'm not much on currency plays but if the play is a normal option, then the risk is your investment. Straight option plays are fun but extremely risky. Just substitute the word "derivative" for "option" to get the proper perspective.
William Ackman, founder of hedge fund Pershing Square Capital Management, placed a bet that would benefit if Hong Kong decides to remove its peg against the U.S. dollar, reports Katherine Burton for Bloomberg.
Ackman is purchasing Hong Kong dollar call options. He believes that the best way for the government to allow the currency to appreciate would be to shift the peg to HK$6 against the U.S dollar, or a 30% rise, and then switch the link to the Chinese yuan over three to six years.