The document discusses foreign currency options, which are options to purchase or sell one currency at a price denominated in another currency. It explains the concept of exchange rates, trading currency, and underlying currency. It also differentiates between dollar-denominated options and cross-rate options, and mentions the introduction of cash-settled foreign currency options. The term 'foreign currency' includes individual national currencies and the European Currency Unit (ECU).
documents/vol00010-efta01353430-pdf.pdf
{"document_type":"other","document_subtype":"financial document","key_organizations":["European Economic Community"]}