RMB/FX Option


RMB/FX exchange option refers to the right to buy or sell a specific amount of foreign exchange assets at an agreed exchange rate on a trading day in future. The buyer of the option owns the right by paying an option premium, while the seller of the option receives the option premium and performs its obligation when the buyer exercises the option (ordinary European option). It is up to the Bank and the customer to decide through negotiation the currency, amount, term, pricing parameters (volatility, strike price, spot price/forward exchange rate, local and foreign currency interest rates), transaction price (option premium) and settlement arrangements of option transactions. 


To apply for the RMB/FX option business, customers shall enter into the Master Agreement for RMB-Foreign Exchange Swaps and RMB-Foreign Exchange Option Transactions, and abide by relevant regulations of China on foreign trade, customs and insurance (among others), as well as related provisions of the People’s Bank of China, CBIRC, and SAFE. 

Application Procedure 

The same as RMB/FX spot and forward.