Options

Currency options provide an opportunity for investors to take a view on Exchange Rate and use it for hedging their exposures. Currency option is a derivative contract which gives the buyer of the option the right, but not the obligation, to buy or sell the currency at a stated date and at a predetermined price. The seller of the contract has the obligation to honor the contract when the contract is exercised.  There are two types of currency options: Call and Put. A call option gives the right to buy and a put option gives the right to sell.