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Category: Project

Description: An FX Asian option or Asian currency option is a special type of option contract where the payoff depends on the average of the underlying foreign exchange rate over a certain period of time. The payoff is different from the case of a European option or American option, where the payoff of the option contract depends on the underlying FX rate at exercise date. Options give market participants many opportunities to limit risk and increase profit. Currency market fluctuations can have a lasting impact on cash flow whether it is buying a property, paying salaries, making an investment or settling invoices. By utilizing FX Asian Options, business can protect themselves against adverse movements in exchange rates.