Swap Options (for Debt Management)


A foreign exchange interest rate/currency swap option refers to a practice whereby the customer, upon the payment of an option premium, has the right to decide whether the interest rate swap (currency swap) should take effect on a future date (European options) or in a future period of time (American options), in order to avoid losses but gain from the interest rates or exchange rates volatility that may arise from a loan (or an investment). In fact, this product is an option trade of foreign exchange interest rate swaps (or currency swaps). 

Target Customers 

Domestic institutional customers with assets or debts in foreign currencies.