Vanilla FX Options provide the right (but not an obligation) to buy or sell a specified amount of one currency in exchange for another currency, at a rate agreed when the option is bought (strike rate), on an agreed settlement date.
They offer full protection against unfavourable changes in foreign currency values. You can benefit from a favourable exchange rate movement by transacting at the prevailing spot rate.
Determine and budget your cash flows.
The opportunity to benefit from favourable foreign exchange movements.
Protection against the direct impact of unfavourable changes in foreign currency values.
Allows you to manage your foreign exchange risk and provides flexibility if your circumstances change.
The right, but not the obligation, to sell a specified amount of one currency in exchange for another currency at a rate agreed when the option is bought (strike rate), on an agreed settlement date.
Offers full protection against unfavourable changes in foreign currency values. You can benefit from a favourable exchange rate movement by transacting at the prevailing spot rate.
Benefits:
Points to consider:
Put Option could be suitable:
The right, but not the obligation, to buy a specified amount of one currency in exchange for another currency at a rate agreed when the option is bought (strike rate), on an agreed settlement date.
Offers full protection against unfavourable changes in foreign currency values. You can benefit from a favourable exchange rate movement by transacting at the prevailing spot rate.
Benefits:
Points to consider:
Call Option could suitable:
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Any advice on this webpage does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Before making any decision in relation to this information, you should consider the Product Disclosure Statement available at Financial Markets or by calling 1800 307 827. The products on this webpage are issued by National Australia Bank Limited ABN 12 004 044 937 AFSL 230686.
Please consider our Financial Services Guide.
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