currency futures option

Currency Futures Option

An option contract where the underlying asset is a currency futures contract. That is, a currency futures option gives the holder the right, but not the obligation, to buy (for a call) or sell (for a put) a currency futures contract;, which is a contract to exchange two currencies at an agreed-upon exchange rate at a certain point in the future, regardless of what the exchange rate is at that future time. This helps the holder manage his/her foreign exchange risk.

currency futures option

An option that gives the owner the right to buy (call) or to sell (put) a currency futures contract.