With currency futures options the underlying asset is
A)foreign currency.
B)a call or put option written on foreign currency.
C)a futures contract on the foreign currency.
D)none of the above

Question

Quizplus · Accepted Answer

The underlying asset with currency futures options is a futures contract on the foreign currency. This means that the option derives its value from the price movement of the futures contract, which is based on the exchange rate of the foreign currency against the domestic currency.

With Currency Futures Options the Underlying Asset Is