CALL SPREAD OPTION
Call Spread Option is a structured product which combines the purchase of a right (not an obligation) to buy certain currency (Buying Call Option) and the selling of a right to buy certain currency (Selling Call Option) with the same amount at different strike prices simultaneously in one transaction
Feature
Benefit
Risk
The movement of the exchange rate cannot be predicted accurately and any movement that differs from expectations may increase the cost of the Call Spread Option transaction.
Cost
Premium cost of Call Spread Option will be borne by Customer, calculated based on range of Strike Price and tenor of the transaction.
Terms and Conditions:
Ilustration
Customer has a plan to drawdown foreign currency loan as much as USD 1,000,000 on 5 August 2021 for tenor of 1 year. As Customer has revenue in IDR, in order to protect the value of their foreign currency loan from volatility risk of currency, Customer will have to hedge using product Call Spread Option with Bank with range of rates USD/IDR = 14,250 and USD/IDR = 14,750 in consideration to expectation that exchange rate of USD/IDR will not appreciate to level above 14,750.
On 5 August 2022, Bank will have Fixing Rate based on market spot rate using Refinitiv page with ticker JISDOR. On expiry date of the option, 5 August 2022, simulation of what will happen to this Call Spread Option on 5 August 2022:
Menara Bank Danamon Jl. HR Rasuna Said Blok C No. 10 Kelurahan Karet, Kecamatan Setiabudi Jakarta Selatan 12920, Indonesia
. |
Email: hellodanamon@danamon.co.id
The following exchange rates are subject to change without notice. For the latest Currency Info Contact the nearest Danamon branch.
Kurs per 16 June 2025 16:00:12 WIB
Currency | Buy | Sell |
---|---|---|
USDIDR |
16,203
|
16,328
|
SGDIDR |
12,642
|
12,767
|
AUDIDR |
10,538
|
10,656
|
EURIDR |
18,750
|
18,929
|
D-Point is a point reward program for all banking activities conducted by the customer. It is a loyalty program launched by Danamon to reward the customer’s loyalty.