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   Contingent Currency Option
   















 

C

Contingent Currency Option

An option that protects a portfolio from currency losses only when the local return on the underlying portfolio falls below a prespecified value. This option is less expensive than an unconditional currency option owing to the diminished likelihood of concurrent losses on the currency component and asset component of the total portfolio. A special case of the Contingent Payout Option. See Multi-Asset Option.

Glossary * C