Standard Chartered Bank today said that it was among the first to transact in the currency options market on the National Stock Exchange (NSE) today.
The bank struck its first transaction at the open of trade, when it dealt an option contract at strike of 41.5 for November 2010 maturity, a press release issued here stated.
A currency option is a contract that allows the buyer the right but not the obligation to buy a currency at a pre-set price either on or before a fixed future date.
The buyer can execute the option if it is in the buyer's favour only. The buyer pays a premium for this right.
"The option to trade in currency options further adds to the breadth and depth of the Indian financial markets, by expanding the suite of risk management solutions available to market participants," the bank's Trader, Foreign Exchange, Rohan Naik, said.
"We welcome the move and will continue to work actively towards the development of the financial markets," he added.
