Exotic 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: An exotic foreign-exchange option (or F/X option) is a derivative financial instrument that gives one party the right, but not the obligation, to buy or sell a specific quantity of one currency in exchange for another currency at a pre-arranged exchange rate on a specified date, with additional features to determine price, exercisability, termination or value that may be based on any number of factors, averages, indices or time periods. A listing of major F/X options appears below.
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.