I'm trying to understand the concept of 'vanilla currency'. Could someone explain what it is and how it differs from other types of currencies?
            
            
            
            
            
            
           
          
          
            5 answers
            
            
  
    
    NebulaNavigator
    Fri Nov 15 2024
   
  
    Conversely, in a 'put' option, the buyer has the right to sell the contracted currency.
  
  
 
            
            
  
    
    Michele
    Fri Nov 15 2024
   
  
    A vanilla currency option represents a specific type of financial derivative.
  
  
 
            
            
  
    
    Lucia
    Fri Nov 15 2024
   
  
    Both types of options allow for the transaction to occur at a predetermined price, known as the 'strike price'.
  
  
 
            
            
  
    
    TopazRider
    Fri Nov 15 2024
   
  
    This instrument grants the buyer a particular right. Specifically, the buyer has the right to engage in a transaction without being obligated to do so.
  
  
 
            
            
  
    
    KimonoSerenity
    Fri Nov 15 2024
   
  
    In the context of a 'call' option, the buyer has the right to purchase the contracted currency.