Currency option

(redirected from Currency Options)

Currency option

An option to buy or sell a foreign currency.

Currency Option

An option contract in which the underlying asset is a foreign currency. The option gives the holder the right but not the obligation to buy (for a call) or sell (for a put) a set amount of the currency at a certain exchange rate on or before the expiration date. They are largely used when international corporations wish to hedge against the possibility of adverse movements in foreign exchange rates.
References in periodicals archive ?
Manulife Life Insurance Company (Manulife Japan) starts sales of a Currency Options Type Variable WL Insurance through The Kagawa Bank, Ltd.
com/) currency options ) and this is a more effective safety net compared to stop-loss mechanism.
Underwood first started trading Latin America currency options in the late 1990s for NatWest.
Reich previously served as CEO of FX Bridge Technologies Corp, a vendor of electronic currency options platforms for retail traders.
The bank is weighing all currency options, which include but are not limited to US dollar-denomination, the CEO added.
TABULAR DATA OMITTED This would be a significant roll-back of the current rules, which permit deferrals of gains and losses on qualifying hedges involving interest rate and commodity futures (SFAS 80) and on purchased foreign currency options (EITF Issue No.
The SEC has now addressed this situation by pronouncing that those complex currency options must also be revalued on a quarterly basis unless they are used to hedge firm commitments.
Innovative financial instruments and transactions--such as interest rate swaps and caps, foreign currency options, interest-only strips, asset securitizations and many more--have become commonplace and are changing the role of traditional instruments such as loans, bonds and stocks.
rigorous analysis of the currency options for a separate Scotland, showing that none of the alternatives would work as well as using the pound as part of the UK.
Fifth Third has implemented the Foreign Exchange, Money Markets, Currency Options, Settlements and Confirmations, Money at Risk and Credit modules from the Wall Street System treasury and capital markets solution.