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Where to Hedge with Currency Options
Your local banks Treasury division should have the ability to offer you currency options. They generally have minimum deal sizes - generally over USD 200,000 as the face value.
Don't be afraid to ask your bank how they arrived at a price for an option. It is made up of the spot rate, strike, forward points and volatility. If you have these variables you can use our option pricing
calculator to check the price.
Currency options can also be bought on various exchanges such as the IMM. To transact these you will need to set up a relationship with a company that can execute the trades on the behalf. As always stick to somebody that has a good reputation.
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