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Tatra banka

4.12.2016 23:23

Currency options and strategies

Currency option represents the right to purchase (Call)
or sell (Put) one currency against another on the specified
day in the future at a previously arranged exchange rate.
Premium is paid for option purchase, client receives
premiumfor option sale.

Options

Options

We offer these options:

  • Reinsurance against currency risk by investing into purchase of options
  • Option owner has a possibility to choose, i.e. he/she can request deal performance or get out of deal
  • Cost-free currency reinsurance (hedging) is possible by a beneficial combination of currency options

 

Comparison

Comparison

PURCHASED OPTIONFORWARD
Minimum volume EUR 50,000
Minimum volume EUR 30,000
Right to purchase/sell 1 currency against another
Obligation to purchase/sell 1 currency against another
Necessity to pay premium No initial costs
Client chooses exchange rate (Strike) Exchange rate calculated by client dealer
Flexible hedging tool with numerous variations
Simple hedging tool

 

Conditions

Conditions

Conditions:

  • Minimum volume EUR 50,000
  • Settlement within 1 year
  • Conclusion of deals via telephone from 8:30 a.m. until 4:00 p.m.
  • Possibility of settlement without delivery (Non Delivery), by telephone
  • Signed contract with the Clients Department, Capital Markets Division

 

Basic terms

Basic terms

Click here for detailed description of financial tools and related risks.