ABSTRACT
Several currencies are spelled out from the group of convertible currencies, or in other words, currencies that are the trust of economic actors throughout the world because they have a value that is believed to be stable. This research will examine the US dollar against the rupiah, which will depend on market policies and mechanism. In 2018 there was sustainable economics where the value of the rupiah weakness and also touch volatility up to 25% and makes economics actors worry about protecting their assets. So, Bank Indonesia as a central bank provides to protect assets by using derivatives. The model to be used in this research is the Black-Scholes model, and it will be compared with the binomial model for the case of exchange of rupiah against the dollar, and both models are measured using average mean square error (AMSE) to see how small the error is obtained.
