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.
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