Vanilla FX Options

The terms and conditions of the F/X options incorporate by reference such credit and other terms as the parties may establish through their pre-existing bilateral agreement. The F/X options have the following characteristics:


Contract Overview:	A vanilla F/X option is a derivative financial instrument that gives one party the right, but not the obligation, to exchange money denominated in one currecy into another currecy at a pre-arranged exchange rate on a specified date.
Trade Date:	The date on which the parties enter into the options contract.
Option Style:	European Style: A European style option allows the holder to exercise only at the expiration date, i.e. a single pre-defined point in time. American Style: An American style option allows the owner to exercise the option at any time before the expiration date.
Call Currency:	Currency for call option.
Put Currency:	Currency for put option.
Strike Price:	The price at which an investor can exercise an option.
Rebate:	A feature of some exotic options where the premium of the option is refunded if at the time the option expires it has no value.
Expiration Date:	The date at which the option contract expires.
Expiration Time:	The time on which the option contract expires.
Settlement Date:	The date on which the option settles.
Premium:	Premium amount expressed in the premium currency.
Premium Currency:	Currency in which the option premium is expressed.
Premium Date:	The date on which the premium amount is due.
Quoting Convention & Min Increment	Notional amount, agreed by the counterparties.
Minimum Size:	Notional amount, agreed by the counterparties.
Notional Currency:	Currency in which the contract size is expressed.