MT 306 Field Specifications

9. Field 12F: Option Style

FORMAT

Option F

4!c

PRESENCE

Mandatory in mandatory sequence A

DEFINITION

This field specifies the option style.

CODES

Option Style must contain one of the following codes (Error code(s): T64):

AVRF	An Average Rate Forward has a pre-determined forward rate (agreed on trade date) which is compared to the average spot observations.
AVRO	An Average Rate Option is an option where the average of the spot prices is compared to the strike price on expiration date.
AVSF	An Average Strike Forward is a type of forward in which the forward price is based on an average of the spot rate over a period of time.
AVSO	An Average Strike Option is a type of Asian option in which the strike price is based on an average of the spot rate over a period of time. The dates used to calculate the average strike price cover the life of the option, and are referred to as the "fixings".
BINA	A binary option is an agreement under which a fixed amount is paid out if a specific condition is met at any time during the exercise period. The expiration style is European or American. The binary option has only "payment triggers".
DAVF	A Double Average Forward is a forward which combines the features of an average rate forward and an average strike forward.
DAVO	A Double Average Option is an option which combines the features of an average rate option and an average strike option.
DIGI	A digital option is an agreement under which a fixed amount is paid out if a specific condition is met on expiration date. The digital option has only "payment triggers" which may be single or double trigger level.
NOTO	A notouch option is an agreement under which a fixed amount is paid unless a specific condition is met. The notouch option has only "no payment triggers" which may be single or double trigger levels.
VANI	A vanilla option is a contract that provides the buyer the right but not the obligation to buy or sell the underlying currency at a predetermined rate with expiration determined by the expiration style. The expiration style is European, American, Asian or Bermudan.