How to enter a FX Option

Created by Erik Åkerlund, Modified on Mon, 16 Oct 2023 at 04:59 PM by Axel Johansson

To enter a FX Option open to New Deal and choose FX Option

Enter Legal Entity and counterpart.

Choose FX Option Style (European if exercise date is at the same date as maturity date and American if excersice date can be at any time during the life time of the option)

If relevant chose FX Option type (knock in or knock out) 

Choose Buy or Sell

Choose Put or Call

Fill in currencies and amount

The premium currency and amount

Fill in relevant dates, if it is an european  the exercise date will automatically be set to the Expiry date. If its an american option leave the exercise date blank.

Enter applicable market data in Spot and forward rate. Enter Strike price according to agreement. 

If a Knock in or knock out FX option the barrier field will be shown and should then be filled in.

If a zero cost FX option should be entered first enter a knock in FX option and choose add deal and enter a Knock out  FX option. Enter Premium 0 for both deal parts.  

For the premium the accounting will be set up as an fee.

Time and Expiry location only needs to be filled out if the FX option should be matched through Finastra, should be stated in the agreement. Finastra has these 2 fields as matching criteria. 

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