FpML Issues Tracker

1362: FX Option – Option Type

October 25, 2024

resolved

Tweak

Have not tried

Architecture

none

BrianGibbons

None

Summary

Why is there no Option Type tag (Put / Call) for an FX Option, but I do see one for Bond Option?

Notes:

  • jbaserba

    12/12/24 5:00 am

    Contrarily to other types of options, FX Options are considered to be put and call simultaneously (when you buy a currency you are necessarily selling another currency). Therefore the implementation uses elements <putCurrencyAmount> (for the currency you have the right to sell) and <callCurrencyAmount> (for the currency you have the right to buy). The option as a whole does not have an option type tag because they are always put and call at the same time (note that both put and call amounts are mandatory).

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