1. What is RMB foreign exchange option?
RMB foreign exchange option refers to the right that the customer obtains after paying a certain RMB fee (option fee) to the bank, that is, at a certain date in the future, the customer can choose whether to exercise the contractual right to conduct RMB-to-foreign exchange transactions and buy and sell the agreed amount of foreign exchange to the bank at the agreed exchange rate.
RMB foreign exchange option is a simple European option. At present, there are two products for customers to choose from: foreign exchange call option and foreign exchange put option.
Second, the investment object
It is applicable to corporate customers with their own needs and hedging purposes, such as enterprises, institutions, state organs, social organizations, the armed forces and foreign-invested enterprises established in People's Republic of China (PRC) (excluding Hong Kong, Macao and Taiwan).
Third, investment advantages.
1. RMB foreign exchange option is a derivative of the basic exchange rate, and its trading structure is simple and clear, which can be customized according to customers' needs.
2. RMB foreign exchange option is an effective risk control tool for risk avoidance and hedging. Buying RMB foreign exchange options has the characteristics of limited risk and unlimited income, which can help customers avoid the losses caused by exchange rate fluctuation risk.
3. Customers can hedge by purchasing RMB foreign exchange options, control the maximum loss of foreign exchange risk within the option fee, and reserve the opportunity to gain benefits from favorable exchange rate fluctuations.