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 seminar on Friday will examine the four currency options for Scotland.
Currency options and futures are mostly traded during such times, assuming the price of [yen sign]7 to the dollar is maintained.
During the same period, currency options average daily premium turnover surged 85 percent from Rs 31.2 crore to Rs 57.6 crore.
The trading volume in over the counter foreign currency options (which are not traded on the stock exchange) totaled about $22.4 billion in the third quarter.
Fonacier said the peso-RMB trading facility which will start in November, will serve to diversify currency options in the local FX market.
It diversifies currency options and strengthens the FX market governance framework.
TravelCar offers a competitive commission rate with a platform that is available in 29 languages and 40 currency options.
With this key transaction, Seven Stars Cloud will leverage DBOT's established and regulatory approved ATS for powering SSC's blockchain based NextGen X, which focuses on the trading of financial products including ETFs backed by digital assets, that can be tokenized and settled (including digital currency options) via Initial Exchange offerings.
There was an exhaustive debate about the currency options for an independent Scotland back in 2014.
7, few tax practitioners would have suggested that over-the-counter (OTC) foreign currency options on "major" currencies should be accorded Sec.
GEMs has reported that SAMA has instructed local banks to halt trading currency options on SAR forwards.
Yet firms which are reluctant to pay premiums for currency options do precisely that when they purchase car, fire or buildings insurance.