EFTA Document EFTA01353430

CHAPTER VI FOREIGN CURRENCY OPTIONS Foreign currency options-sometimes referred to simply as currency options-are options to purchase or sell one currency at a price denominated in another currency. The price of one currency in terms of an- other currency is known as an exchange rate. The exercise price of a currency option thus represents an exchange rate. The currency in which the premium and exercise price are denominated is referred to as the trading currency. The currency to be pu