Features of currency option contracts
Standardized exchange traded currency options have the following features:
The underlying for the currency option shall be US Dollar – Indian Rupee (USD-INR) spot rate.
The options shall be premium styled European call and put options.
The size of each contract shall be USD 1000. The premium shall be quoted in Rupee terms. The outstanding position shall be in USD
The maturity of the contracts shall not exceed twelve months.
The contracts shall be settled in cash in Indian Rupees.
The settlement price shall be the Reserve Bank's Reference Rate on the date of expiry of the contracts.
Standardized exchange traded currency options have the following features:
The underlying for the currency option shall be US Dollar – Indian Rupee (USD-INR) spot rate.
The options shall be premium styled European call and put options.
The size of each contract shall be USD 1000. The premium shall be quoted in Rupee terms. The outstanding position shall be in USD
The maturity of the contracts shall not exceed twelve months.
The contracts shall be settled in cash in Indian Rupees.
The settlement price shall be the Reserve Bank's Reference Rate on the date of expiry of the contracts.
