EFTA Document EFTA01393122

The discussion above in this chapter relating to dol- lar-denominated foreign currency options generally applies to cash-settled foreign currency options ex- cept to the extent that such discussion specifically ap- plies to physical delivery options. The contract size of a cash-settled foreign currency option, like the size of other foreign currency options, is expressed in terms of the amount of the underlying currency covered by the option. EXAMPLE: if the exercise price of a cash-settle