Currency option is the right (unlike forward, which is an obligation) to make conversion of funds between two different currencies at the predefined rate (strike price) on the predefined day (day of expiration). The option buyer has to pay the seller for this right so called option premium. Currency option enables the client to insure the exchange rate for a future conversion (hedging).
In case of favourable exchange rate movement, he/she is not obliged to apply the right and he/she can make a conversion at the current exchange rate (in case it is better). The client can therefore plan his/her cash flow more effectively and, unlike the forward, he/she has a possibility to benefit from a favourable exchange rate movement. In case of option writing, the client is obliged to deposit collateral at concluding a deal (amount depends on trade type). Deal is concluded by telephone with the following written confirmation.

Usage - conversion of funds from one account in one currency to another account in another currency, funds conversion of incoming foreign payment, purchase of funds for outgoing foreign payment, funds conversion of provided foreign currency loan, purchase of funds for payment of foreign currency loan principal or interest, fixing of costs in an uncertain business case (e.g. participation in tender etc.) Currency options can be combined into various option strategies according to the current market situation and client's expectations.

Conditions:
- signing Treasury Business Conditions,
- minimum volume of deal equivalent to USD 300 000,
- sufficient amount of funds for collateral in case of option writing,
- deal concluded between 8.30am and 4.00pm each working day.