FX Option
Save FX rate for a future date with the
freedom to benefit from the market as well
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. A barrier may be incorporated in the FX option. FX options with a barrier (barrier options) are activated or deactivated depending on the barrier reached.
FX Option Parameters:
Maturity date
Premium
Exercise price
Denomination
Underlying asset (currency pair, reference currency pairs listed below)
Call option right to buy currency, Put option (put option) right to sell currency
Barrier FX options allow achieving a more optimal premium and building a strategy according to exchange rate expectations
Barrier FX options are reached or hit when the relevant level is reached at any point until the option matures
Term:
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
Objectives:
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.
Target market of the product
The FX Option is a financial instrument, which the Bank manufactures and distributes as a product. The table below sets out the criteria for determining for which client profile the product is compatible with or not.
Contact dealers:
Treasury Sales Department
Deyan Mankovski – Head of the Treasury Sales Department – 02 80 10 862
Kalina Mays – Head of FX Unit, Treasury Sales Department – 02 97 66 233
Milena Lukanova – Senior Dealer, Treasury Sales Department – 02 97 66 232
Oktay Hasanov – Senior Dealer, Treasury Sales Department – 02 97 66 236
Hristo Arnaudov – Dealer, Treasury Sales Department – 02 93 91 364
Velichko Dimov – Dealer, Treasury Sales Department – 02 93 91 126
Kalina Yankova - Dealer, Treasury Sales Department – 02 93 91 133
Hristo Sugarev – Head of Asset Management Unit, Treasury Sales Department – 02 93 91 133
Ivelin Ivanov – Senior Dealer, Treasury Sales Department – 02 93 91 365
Martin Georgiev – Dealer, Treasury Sales Department – 02 97 66 234
Documents
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Key Information Document FX Barrier Option Bank buys
PDF file
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Key Information Document FX Barrier Option Bank sells
PDF file
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Key Information Document FX Option Put Bank buys
PDF file
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Key Information Document FX Option Call Bank sells
PDF file
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Key Information Document FX Option Call Bank buys
PDF file
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Key Information Document FX Option Put Bank sells
PDF file
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Product Description FX Option
PDF file
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Information about FX option costs
PDF file
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