Currency option

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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 ?
The official is accused of manipulating foreign exchange options in advance of an exceptionally large trade by the Palo Alto, California-based Hewlett-Packard Company (HP) in 2011.
Moreover, in the foreign exchange options market, the volatility priced into put and call option premia had become more balanced compared with end-March and with one year before.
His team works with clients to design effective hedging strategies, utilizing foreign exchange options and cross-currency swaps.
BANKING AND CREDIT NEWS-September 8, 2014--CME Group sets record for foreign exchange options trading
M2 EQUITYBITES-September 8, 2014--CME Group sets record for foreign exchange options trading
The bourse plans to introduce index options in the second quarter of 2013 and foreign exchange options will start trading in 2013, Yilmaz said.
The prices for foreign exchange options allow us to extract information on implied market perceptions of future exchange rate risk.
Commenting on the launching of the foreign exchange options trading service and its corresponding trading platform, Mr.
We are prevented from recommending private services and therefore draw the tourist's attention to the different foreign exchange options on offer," the ministry said.
Toronto, Ontario, May 7 -- BMO Capital Markets, the investment and corporate banking arm of BMO Financial Group (NYSE: BMO)(TSX: BMO), this week started trading foreign exchange options in the Chinese Yuan (CNY).
The bank also said that it would start export-oriented foreign exchange options operations as of April 6, 2011.

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