currency futures option(redirected from Currency Futures Options)
Currency Futures Option
An option contract where the underlying asset is a currency futures contract. That is, a currency futures option gives the holder the right, but not the obligation, to buy (for a call) or sell (for a put) a currency futures contract;, which is a contract to exchange two currencies at an agreed-upon exchange rate at a certain point in the future, regardless of what the exchange rate is at that future time. This helps the holder manage his/her foreign exchange risk.
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currency futures option
An option that gives the owner the right to buy (call) or to sell (put) a currency futures contract.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.