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
- 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.