Foreign Exchange Option - Assignment Point
Foreign Exchange Option

Foreign Exchange Option is a derivative financial instrument that gives the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date. It is the deepest, largest and most liquid market for options of any kind. The global market for exchange-traded currency options was notionally valued by the Bank for International Settlements at $158.3 trillion in 2005.