Currency options

Asia Risk 15: Delivering options for FX derivatives

The Asian foreign exchange markets have experienced more than their fair share of ups and downs during the past 15 years. But the phenomenal growth of trade flows between Asia and the rest of the world, and more recently, within the region, has created a…

The rise of multi-currency options

Adrian Campbell-Smith (RBS Currency Options Trading) and Ben Hamdani (RBS Currency Structuring) examine the realm of multi-currency options and explain some of the reasons behind their increasing popularity

Blossoming interest

Foreign exchange derivatives trading levels suffered declines this year as hedge funds and other players partly stepped back from the market. But the asset class remains liquid and is attracting a new breed of market participants. Hardeep Dhillon reports

KO-ed in Korea

Derivatives litigation has reached a new level in South Korea, where early court rulings on corporate currency options positions went against financial institutions and threatened the legal enforceability of derivatives contracts in the country. A change…

Smiling hybrids

Vladimir Piterbarg develops a multi-currency model with foreign exchange skew suitable for valuation and risk management of forex-linked hybrids, in particular power-reverse dual-currency swaps. The emphasis of the article is on model calibration to…

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