The FX option is a derivative financial instrument. The client-buyer of the option may exercise his right to buy or sell a certain amount in a given currency within the maturity date, at his own discretion (for American type options) or on the maturity date (if the option is European type), as well as to sell the option back to DSK Bank. The option provides a right, but not an obligation for the client, to buy or sell an asset (currency) under pre-agreed terms in the order for execution of the FX option, for which the client pays in advance a premium to DSK Bank.
FX Option Parameters:
- Maturity date
- Exercise price
- Underlying asset (currency pair, reference currency pairs listed below)
- Call option right to buy currency, Put option (put option) right to sell currency
Usually FX option transactions are concluded for a period of up to 1 year
Reference currency pairs can be:
EUR/USD, EUR/GBP, EUR/HUF, EUR/JPY, EUR/CHF, USD/JPY, USD/CHF
Achieving complete elimination of FX risk and predictability of payments
*On the maturity date for European type and upon expiration of the term for American type options, the client is not obliged to buy or sell currency, according to the terms of the submitted order for FX option to the FX options trading agreement.
Deyan Mankovski – Head of the Treasury Sales Directorate – 02 80 10 862
Velichko Dimov – Dealer, Treasury Sales Directorate Directorate – 02 93 91 126