Q145
Conditional currency options are
A.
options that do not require premiums
B.
options where the premiums are cancelled if a trigger level is reached
AnswerC.
options that allow the buyer to decide what currency the option will be settled in
D.
options with discount
Answer: Option B
Solution
Answer: Option B
Solution:
Conditional currency options are options where the premiums are cancelled if a trigger level is reached. A conditional call option is a provision attached to some callable bonds. Conditional call provisions are meant to protect investors if their high-yield bonds are called well in advance of maturity.