Use

Currency barrier options have a defined upper and lower limit (instrike or outstrike). If the market exceeds or falls below these limits, the option either becomes effective or expires depending on the option type. You enter these barriers together with the transaction data.

Using the knock-in or knock-out activities, you activate the options for exercise/expiration:

You can check the instrikes and outstrikes of currency barrier options using the Expiration/Barrier Check function. After comparing the transaction data with the relevant prices, the system proposes a transaction (knock-in, knock-out, or expiration) for procesing the transaction further.

You can use the Option Price Calculator to calculate market-based option prices. The option price calculator includes the agreed barriers and rebates that are paid upon expiration of the option, if required.

You cannot enter rebates in the transaction structure.

Features

Im Treasury and Risk Management, you can represent the basic option categories used for trading on the market. The basic categories for calls (purchase options) and for puts (sale options) include the following:

You can also enter double barrier options activation or expiration depends on whether the values exceed/fall below two barriers. A double barrier option knock-in becomes effective, for example, when either the upper limit is exceeded by the market or the market falls short of the lower limit.