Filter by Categories
Accounting
Banking

Derivatives




Conditional Currency Option


A currency option (FX option or foreign exchange option) in which the premium payment is conditional on the actual movement of the spot exchange rate. For instance, a conditional currency option may take the form of a call option with a strike price of USD/Euro 1.2 and a conditional premium of 8 cents with a trigger spot of USD/Euro 1.3. If the future spot rate doesn’t trade through the trigger, the option’s holder will not be required to pay the premium. Otherwise, when the future spot rate breaks through the trigger, the premium payment gets activated.



ABC
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*