• Currency options with a guaranteed exchange rate that enable buyers who like the asset, German bonds for example, but not the asset's pricing currency, to arrange to be paid in a different currency for a fee.
Quanto: Is an option feature which removes foreign currency risk from a derivative transaction from the investor's viewpoint. It is built into the structure. Quantos are also known as Guaranteed Exchange Rate Contracts. The purpose is hedge or lock in a known currency exchange rate.
What to Know Before Declaring Your Financial Independence: Twenty-somethings may not realize it, but every time they enter a new phase of their life as young adults - perhaps starting college, a career or a family - they're also venturing into a new world of money management. Here are ways to be prepared. More...
Anyone who has never made a mistake has never tried anything new. - Albert Einstein