EFTA Document EFTA01353479

underlying rate-modfied value is (1.27 x 100) = 127. The option is in the money. The exercise settlement value of the option is (127 - 125) $100 = $200. Do not confuse the rate-modifier with the multiplier. They serve different purposes and may or may not have the same numeric value. EXAMPLE: Assume that the exchange rate underly- ing a rate-modified call option on the exchange rate between the U.S. dollar and the Mexican peso is stated as Mexican pesos per U.S. dollar (USD/MXN). The r