EFTA Document EFTA01353478

RATE-MODIFIED CASH-SETTLED FOREIGN CURRENCY OPTIONS A rate-modified currency option is a type of foreign currency option that may be thought of as an option on an underlying exchange rate between two currencies. The holder of a rate-modified currency option receives in U.S. dollars the difference between the modified rate and the exercise price multiplied by a multiplier (e.g., USD $100). In this respect, rate-modified currency options resemble cash-settled index options where the inde