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 ?
1256 and, thus, a foreign currency option could be a foreign currency contract.
Specifically, Mashreq's aACAyDual Currency Product' is a short-term, currency related investment product which involves a currency option. This means that on maturity, the bank is given the right to repay the client's principal and interest earned in either the base currency or the alternate currency.
Specifically, Mashreq's 'Dual Currency Product' is a short-term, currency related investment product which involves a currency option. This means that on maturity, the bank is given the right to repay the client's principal and interest earned in either the base currency or the alternate currency.
So "Sterlingisation" or unofficial use of the pound is the most likely currency option.
Any Scottish currency option - a separate currency, unilateral use of the pound, a formal currency union or the euro - would cause "overall risks to the UK, as well as to Scotland, to be greater than those of the current situation", according to Fitch.
Currency option is a derivative instrument which gives the owner the right, but not the obligation, to exchange money denominated in one currency into another currency at a pre- agreed exchange rate on a specified date.
The currency option we consider has a strike price of $1.50 and a notional value of [pounds]100,000.
The probability distribution of future exchange rates implied by one-month currency option prices became notably tighter during the second quarter, reflecting expectations of lower exchange rate volatility and market participants' greater willingness to bear the risks of selling options.
dollar receivables or payables is a type of transaction risk which can be hedged using forward foreign exchange or foreign currency option contracts.
So, while uptake of the Renminbi in Africa-China trade as well as the use of the currency as reserve and alternate hard currency option in Africa has been slow, there is, increasingly, a strong rationale for governments, businesses and individuals in Africa and for Chinese businesses dealing with Africa to consider the use of Renminbi on a project or individual transaction basis, says Mr de Roos.
The service service is also available in multiple currency option.
dollar/U.K, pound exchange rate and decides to manage that risk by purchasing a foreign currency option directly from a U.S.