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Option
 
Refers the right to buy or sell underlying currency at the agreed price in the future after payment of the premium.

Benefits
As a purchaser of foreign exchange option, you may choose between agreed exchange rate and the spot rate at maturity to delivery.

Potential Risk
You have to pay a certain amount of option premium, whether the option will be exercised in the future, this cost is necessary.
Note:
All the contents stated above are for your reference only. Please consult the local branch of China Merchants Bank for further information. China Merchants Bank reserves the ultimate right of interpretation for the contents in this page.