By: Central News Agency
The Taiwan Futures Exchange (TAIFEX) Monday unveiled two options contracts denominated in Chinese yuan on the exchange of the U.S. dollar against the yuan to provide investors with more hedging tools.
The two contracts are the first yuan-denominated foreign exchange options contracts against the U.S. dollar in the world, the TAIFEX said.
One of the two yuan options contracts is traded based on the settlement price quoted in the Taipei Foreign Exchange Market Development Foundation, while the other one is traded based on the settlement price quoted in the Treasury Markets Association of Hong Kong, the TAIFEX said.
The two options contracts, which are traded between 8:45 a.m. and 4:15 p.m. of every business day, will both be settled in cash, the exchange said. [FULL STORY]