Currency option
- Japanese
- 通貨オプション
- Last reviewed
- September 25, 2026
This is a draft, shown for review before publication.
A currency option is a transaction in which one party buys, from another, the right to buy or sell a foreign currency at a rate fixed in advance (the strike) at a set time in the future. The right to buy dollars by paying yen is called a USD call / JPY put.
Related terms
Explained in detail
Pages that use this term
- Market Size Statistics (BIS Surveys)
- Overview of Exotic Options
- Quanto Options
- FX Forwards
- FX Option Market Conventions
- Overview of Exotic FX Products
- Power Reverse Dual Currency (PRDC)
- PRDC Notes
- The Black-Scholes Model
- The Greeks
- Volatility Smiles and Surfaces
- Volatility Trading
- Understanding Client Needs
- Product Explanations and Pre-Contract Disclosures
- Mark-to-Market Reporting to Clients
- Early Termination