A currency option whose underlying is a currency pair for which there are typically no option contracts on offer. For example, standard currency options in a particular market would involve pairs of Euro/ dollar and Egyptian pound/ dollar. Therefore, a cross-rate option in that market would involve the pair of Egyptian pound/ Euro which would be in some other markets a standard currency pair.
Derivatives
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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