EFTA Document EFTA01353437

EXAMPLE: If a yen-denominated option covering 500.0O0 British pounds is purchased at a premium of 2.63, the cost of the option will be JVI ,315,000 (JY2.63 times the unit of trading of 500,000). Premium settlements of cross-rate options are ef- fected in a trading currency other than U.S. dollars. Similarly, in the event of exercise, the exercise price is paid in the trading currency. OCC has established banking arrangements permitting it to receive and pay foreign currencies in the coun