RMB/Foreign Currency Option
1) Basic Definition
It means that customer and CCB negotiate to conclude and sign option contract; the buyer of option pays certain amount of option fee to seller to obtain the right to exchange a particular currency at the agreed rate on a pre-determined settlement date in the future. The option seller must perform the obligations pursuant to the contents of the option contract. Based on different types of options, it can be classified as foreign currency call option and foreign currency put option. Currently, the transaction currency of CCB RMB/foreign currency option business include the currencies of USD, HKD, JPY, EUR, GBP and etc. to RMB.
2) Product Function
Assist customer to avoid foreign exchange risk to obtain more favorable foreign exchange settlement and sale price in the meanwhile of locking exchange rate cost.
3) Applicable Target
Corporate customers mainly are two categories of non-financial institutional customer and financial institutional customer, including FTZ customer meeting regulatory provision, overseas institutional investor invested in domestic securities market, domestic purchase and sales business customer, overseas agent interest rate business customer and other customers meeting regulatory requirements.