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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