Editing Foreign exchange option (section)

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{{Short description|Derivative financial instrument}}
{{Foreign exchange}}
In finance, a '''foreign exchange option''' (commonly shortened to just '''FX option''' or '''currency option''') is a [[derivative (finance)|derivative]] financial instrument that gives the right but not the obligation to exchange money denominated in one [[currency]] into another currency at a pre-agreed [[exchange rate]] on a specified date.<ref>"[http://au.ibtimes.com/articles/111913/20110213/foreign-exchange-fx-terminologies-forward-deal-and-options-deal.htm Foreign Exchange (FX) Terminologies: Forward Deal and Options Deal]" Published by the [http://au.ibtimes.com/forex International Business Times AU] on February 14, 2011.</ref> See [[Foreign exchange derivative]].<ref>{{cite web |last1=Hammad |first1=Muhammad |title=Fastest Currency Exchange Company |url=https://www.linkexchange.com.pk/ |access-date=10 June 2023 |website=Link International Exchange Company |publisher=Farhan}}</ref>