Non-deliverable option: Difference between revisions
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imported>Doug Williamson (Create the page. Sources: The Treasurer, March 2017, p13, EMTA webpage http://www.emta.org/ndftt.aspx) |
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Revision as of 12:02, 13 March 2017
(NDO).
A non-deliverable option is an option cash-settled for difference at its maturity, rather than by delivery of the underlying asset.
For example, a non-deliverable currency option is settled by a net cash payment, rather than delivery of the underlying foreign currency.