Currency Option

Use

The currency option is an option on a spot exchange transaction and is used as protection from currency fluctuations.

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You can assign OTC currency options both to foreign exchange and to derivative financial instruments. You can create currency options in both these areas.

Activities

For information on creating currency options, see Creating OTC Currency Option .

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When you create a currency option, automatic data is generated in Hedge Management (hedge plan, exposure, hedged item, hedging relationship) .

If you create an option in the Derivatives area, you can branch to the Underlying tab page. Here you find the data for the underlying spot transaction.

To calculate the option premium, choose Option Price Calculator . (See also Option Price Calculator )