Is a transaction between the right seller and the right buyer where the buyer have the right but not obligation to buy or sell a certain amount of foreign currency at a ready-fixed F/X rate in a certain period of time. If this happens, the right seller has to sell or buy the amount of foreign currency stated in the contract at a predefined price.
Call Option: is the right to buy foreign currency at an agreed price in a certain time or predefined period of time. Put Option: is the right to sell foreign currency at the agreed price in a certain time or predefined period of time.
Styles of Options:
American Style Option: This style allows the customers to exercise option at any time within contract execution. European Style Option: This style allows customer to take his options only in the due date of contract.
Contract parties:
Buyer: Individuals, economic entities operating in Vietnam. Seller: Vietnam Eximbank
Transaction Fee:
Is the amount of money that the options right buyer has to pay to the bank (seller) for the option.
Exercise Rate:
Is the rate that agreed by both the seller and the buyer and stated in the options contract.
Currency in transaction:
USD, GBP, CHF, JPY, AUD, CAD and EUR
Amount:
At least USD10,000 (Ten thousand) for USD/VND option. For VND and other currencies options, at least equivalent to USD100,000.
Term:
At least 3 days and maximum 365 days.
Duration of Contact::
Is a period of time that options right can be taken by the buyer’s request. This period is counted from the date of signing the contract to no later than 11.00 am (Hanoi time) on the due date of contract.
Documents:
Customers involved in this transaction must present documents to prove the purpose of foreign currency, amount, currency for payment, point of payment in compliance with the prevailing regulations on foreign currencies control.
Contract Exercise:
Customer has to send the proposal for contract exercise to Eximbank when needed.
Customer Benefits:
Helps customers with export-import service protect capital from unpredictable rate risk generated in the market. At a reasonable price, customer can obtain currency options in a changing foreign currency market. Investment opportunities in rate fluctuation with a fixed premium and unlimited profit.
Form:
Contract for Foreign Currency- VND
Contract exercise request for Foreign Currency-VND
A joint agreement on currency options applied for Foreign Currency-VND
