Currency option

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 ?
Exhibit: Details of foreign currency option in the example * European-style GBP put/USD call, with nondeliverable settlement * Not exchange traded for subject to the rules of an exchange) * Call currency amount: $650,000.
The distinguishing features of a currency option when compared to forward or futures contracts are (1) its flexibility, by offering the holder a right, not an obligation and (2) the fee (premium) that must be paid to obtain the option.
The difference is that the foreign currency option is limited by time, as it does not close the position when the stop-loss price is hit yet still provides financial protection for you.
Premier Advance offers improvements including enhanced allocations, loyalty bonus, AED currency option and automatic lifestyle investment strategies.
Notice 2003-81 offsetting foreign currency option contracts: A party claims a loss on the assignment of a Sec.
Option-related transactions were the only factors leading the two currencies to fluctuate slightly from time to time following the expirations of some currency option deals, dealers said.
The Reserve Bank of India has issued guidelines for introduction of cross currency futures and exchange traded cross currency option contracts in the currency pairs of Euro (EUR)-US Dollar (USD), Pound Sterling (GBP)-USD and USD- Japanese Yen (JPY).
No election is needed for currency forwards or over-the-counter currency option contracts; they automatically receive ordinary gain or loss treatment (which matches the retailer's profit on product sales).
Specifically, Mashreq s Dual Currency Product is a short-term, currency related investment product which involves a currency option.
In this two-part interview, they break down the mechanics and uses of these innovative currency option contracts.
I would urge the Commission not to waste a minute of their time considering a currency option that is dead.
EU Almunia was out talking currencies and the USD, after saying that the Euro was not a good reserve currency option for China and that there was no viable replacement for the USD as a reserve currency.