Meaning of “currency option” in the English Dictionary

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"currency option" in Business English

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currency optionnoun [ C ]

uk us

FINANCE a type of investment that allows you to buy an amount of foreign currency at a particular exchange rate (= price) for a particular period:

Some companies have used currency options to convert dollars into sterling at a known rate two or even three years ahead.

(Definition of “currency option” from the Cambridge Business English Dictionary © Cambridge University Press)