4.1.3 Settlement Method for Currency Options

The following table summarizes how currency options with different option and expiration styles are settled:

Table 4-23 Settlement Method for Currency Options

Option Style	Expiration Style	Exercise Method	Settlement on
Plain Vanilla	American, Bermudan or European	Manual or Auto	For American expiration style: If manually exercised - Any day between earliest exercise date and Contract maturity date (both included), if manually exercised For auto exercise - On maturity, if the option is in-the-money For Bermudan expiration style: If manually exercised - On pre-defined exercise dates or on contract maturity date For auto exercise - On maturity, if the option is in the money For European expiration style: Only on Contract maturity date In all these cases, payment can be a fixed amount if such is opted for
Binary	American or European	Manual or Auto	For American expiration style: If manually exercised - Any day between earliest exercise date and Contract maturity date (both included), if manually exercised For auto exercise - On maturity, if the option is in-the-money. For European expiration style: Only on Contract maturity date Settlement payment is always a fixed amount
Digital	European only	Manual or Auto	Only on Contract maturity date. Settlement payment is always a fixed amount.
No Touch	European only	Auto only	Only on Contract maturity date. Settlement payment is always a fixed amount.