FX option


It refers to that the Seller in an option agreement may obtain the right for purchasing/selling certain currency of agreed sum at agreed price/exercise price within agreed period after the Seller pays some fees (option fees). The Seller may also choose not to exercise that right.


1.Limited cost: Fix limitless risk of exchange rate with limited cost (option fee); 2.Individualized: There are many types of currency option products available, and it may be specifically designed as per requirements of the customer. 3.High flexibility: It is far more flexible than spot forward exchange transactions. The executive power lies in the hand of the customer who may determine whether to exercise that power upon maturity according to the market conditions of that time: Exercise that option for favorable market prices. Execute not option and make transactions at market prices if it is unfavorable for the customer.

Conditions for application

1.It is applicable for customers who need to evade the risks of the exchange rate of other foreign currencies such as Euro and JPY to USD; 2.Minimum sum shall be USD 500,000 or equivalent; 3.The term generally ranges from one week to six months.

Interest rate swap price

The trade price shall be subject to the trade price at each branch of CGB.


The customer has to pay JPY 88 million within two weeks. The current USD/JPY exchange rate is 123. To prevent further rising of JPY, the customer purchases the option of JPY CALL USD PUT, which includes the following: a term of 2 weeks, exercise price of 122.90, option sum of USD 720,000 (equivalent to 88 million JPY) and option fee of USD 3,400. The customer shall pay USD 3,400 for the bank on the purchase date of option. On the maturity date, two weeks later, if USD/JPY exchange rate is 120 (JPY price further rises and the market price is unfavorable for the customer), the customer may exercise the option and purchase JPY at the agreed rate of 122.90 to evade the risk of JPY rising. If USD/JPY exchange rate is 124 (JPY price falls and the market price is favorable for the customer), the customer may waive the option and purchase JPY directly from the exchange market to benefit from the fall of JPY price.

Service Channel

Business Outlets

Kind Reminders

Capital transaction credit line by CGB is required for the transaction of this service. For application of capital transaction credit line, please contact relationship manger of local branch.

Related Financial Instruments

FCY deposit interest rate

Inquiry at business outlets