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Currency Options

Definition

Currency Option is the contract which, after the payment of the premium to the option seller, gives the buyer the right, but not the obligation, to buy or sell an underlying foreign exchange asset or instrument at a specific strike price on a specified date.

Functions

• Customers can, by paying the option fee, obtain the right to buy or sell the foreign exchange at an agreed rate in the future, as to avoid exchange rate risk.

• High flexibility. Customers can decide whether to exercise the option depending on the market conditions.

• Designed in accordance to the customer's needs, the portfolio may consist of multiple options products.

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