ING in Russia

ING in Russia

FX hedging

ING Commercial Banking in Russia capabilities:

  • FX Forwards (Deliverable and Non-Deliverable), FX Swaps, FX Options, Cross-Currency Swaps (CCS), Structured Products up to 10 years, subject to market liquidity

 

Trade pre-requisites:

  • Pre-settlement and settlement limits.
  • Agreement in place.

 

Structured Productexample: Cylinder

  • Client can finance purchase of call option with strike B by selling put option with strike A (Zero-cost strategy)
  • Put and call options are of the same notional.
  • A and B are set on the opposite sides of the current forward rate.
  • If on expiry date spot is above B, the client buys at B. If spot is between A and B, the client buys at the spot rate. If spot is below A, the company buys at strike A.