Conditional currency options are:
A) options that do not require premiums.
B) options where the premiums are canceled if a trigger level is reached.
C) options that allow the buyer to decide what currency the option will be settled in.
D) None of these are correct.

Question

Quizplus · Accepted Answer

Conditional currency options are options where the premiums are canceled if a trigger level is reached. This trigger level is typically a specific exchange rate between two currencies, and if it is reached, the buyer can choose to exercise the option at a favorable exchange rate.

Conditional Currency Options Are