Currency Option provides Corporate treasurers another avenue to manage foreign exchange exposures as the foreign exchange risks of the purchaser of options is known and limited to the premium paid out.
For Trigger Related Options, Corporate treasurers will be able to take delivery at a preset special rate on a given value date which is more favorable than the market traded forward rate. To enjoy this rate, Corporate treasurers agree not to take delivery of the currency under preset conditions from the effective date of the contract.