Currency call option

Currency call option

Contract that gives the holder the right to purchase a specific currency at a specified price (exchange rate) within a specific period of time.

Currency Call Option

A call option in which the underlying asset is a foreign currency. The option gives the holder the right but not the obligation to buy a set amount of the currency at a certain exchange rate on or before the expiration date. As with other currency options, these are largely used when international corporations wish to hedge against the possibility of adverse movements in foreign exchange rates.
References in periodicals archive ?
The Tax Court held that a foreign currency call option is not a foreign currency contract under the plain language of the IRC [section] 1256 contract mark-to-market rules.
03 due to a forward currency call option and a loss of $0.
03 in EPS this quarter due to a forward currency call option we entered into in anticipation of our France Medica purchase.
Convergys has partially offset the financial affect through the use of long-term foreign currency forward contracts for all three foreign currencies and a currency call option on CADs with an aggregate notional value of $621 million as March 31, 2007.