Foreign exchange option

Offers the buyer a right to perform transactions under a certain pair of currencies at a pre-stablished exchange rate.

  • Transactions involving options help to limit potential losses from foreign exchange

Features

  • The company purchases a right (not an obligation) to perform a certain future transaction
  • The product offers protection against unfavorable foreign exchange trends and limits losses
  • The cost is limited to the premium (price) paid for the option
  • The premium is dependent on the selected exchange rate, time to maturity, volatility of the currency pair
  • Options can be actively supported on various pairs of currencies, depending on the needs of each customer
  • Certain formalities are required to undertake this transaction

Additional information

For more information on the “Foreign exchange option” service, please contact the sales team at the DPF.Sales@bcr.ro e-mail address.

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