What is Option?
Refers to commercial transactions in which an exporter has a right to buy or sell a predetermined price, quantity and quality of foreign currency in a given maturity and which puts the Bank into obligation on these subjects, which can be realized as a “call option” or a “put option” and which settlement is performed at maturity.
What Option Types?
Put Option: Means a “right of option” that gives the right to sell a predetermined price, quantity and quality of currency in a given maturity but does not give the exporter any obligation to make a sale. Means a commercial transaction that gives the Bank an obligation to buy at a predetermined price, amount and quality of currency in a given maturity.
Call Option: Means a “right of option” that gives the right to buy a predetermined price, quantity and quality of currency in a given maturity but does not give the exporter any obligation to make a purchase. Means a commercial transaction that gives the Bank an obligation to sell at a predetermined price, amount and quality of currency in a given maturity.
What is the Product’s purpose?
It is aimed to protect the Exporter against the exchange rate risk arising from the increase / decrease in currency exchange rate through option transaction.
Which Option Type is Suitable?
For our exporters who want to fix their TL equivalent of currency receivables against a decrease in exchange rate from today, the “PUT Option” that gives the right to sell currency,
For our exporters who want to fix their TL equivalent of currency payables against an increase in exchange rate from today, the “CALL Option” product that gives the right to buy currency, is suitable.
What currencies can be used for the transaction?
The exchange rates that can be subject to the Option transaction are; USD, EUR, GBP, JPY, and TRY.
What is the Maturity and Transaction Limit?
Option Transactions can be realized at a maximum of 360 days, without any amount limit on the transaction basis.
What is the cost?
The cost of option transactions is the premium amount which our exporters pay on the transaction day. Option premium amount; varies on variables such as market exchange rate on the transaction date, market volatility, the maturity that our exporters will determine and strike.
No commission is charged by the Bank for option transaction.
To make a transaction or for further information; You can contact us at +90 850 200 55 00
Browse Our Sample Transactions
Please click to see our examples of Option Contracts
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Frequently Asked Questions
All our exporters can benefit. A “Derivative Transactions Framework Contract” and the “General Risk Notification Form”, “Over-the-Counter Derivative Transactions Risk Notification Form” and “Compliance Test” which are annexes to this contract must be signed between the Customer and the Bank, and the Customer must be a registered customer within the Bank.
All of our exporters who provide us with related documents can process options transactions without any special conditions such as loan usage, export commitment etc.
The Exporters which currently have their firm information within our Bank;
Must deliver the authorized signatory lists with notary certification belonging to the individuals who are authorized to represent and bind the company and that have their signatures on the contract to Treasury Operation Directorate by hand and/or via mail-courier along with the “Derivative Transactions Framework Contract” and the “General Risk Notification Form” and the “Over-the-Counter Derivative Transactions Risk Notification Form”, which are annexes to this contract, signed in 2 copies.
In addition to these documents, when an option transaction is made, the “Currency Option Transaction Form” obtained from the calculation tools must be delivered to the bank.
- Our Exporter sends the ‘Currency Option Transaction Form’ to our bank which will be obtained by filling in the relevant fields in the option premium calculation screen within the calculation tools.
- The Exporter who wants to make the transaction sends the required premium amount to the Bank’s account in TC ZİRAAT BANKASI - IBAN No: TR 4800 0100 1133 9990 0302 5014. (IT IS MANDATORY TO USE IBAN)
- In the event that the amount of the premium is not deposited by the exporter, the relevant purchase offer shall be null and void.
- Following the delivery of the Transaction Form and the receipt showing that the premium amount is debited to the Bank, our exporter does not have the right to renege on the transaction or change the amount that they want to transact. The Bank reserves the right to reduce the transaction amount.
- The bank confirms the transaction result with the “Option Transaction Receipt” which will be sent to the Exporter on transaction day.
- Our exporter sends the “Option Transaction Receipt” to the Bank by writing “Notified and Accepted” to the “Option Transaction Receipt” signed by two individuals authorized to represent the firm.
- After the bank has sent the original option transaction receipt to the address of the customer within 5 (five) business days at the latest from the transaction date, our Exporter delivers the wet-signed original of the option transaction receipt by mail or courier within 5 (five) business days to the bank at latest.
- Option transactions are European type options and since they are options that can be used at the maturity, no transaction may be performed during the option period.
- At the maturity date of the option transaction, the exporter informs the bank whether the right to buy/sell foreign exchange arising from the option transaction be used. In case no notice is given until the specified time, Exporter will be deemed not using the right arising from the option process. Option transaction becomes null and void automatically. The option premium paid by the customer at the option date remains in the bank and the amount is not returned to the customer under any circumstances.
- Foreign exchange rates to be used in cash settlement are determined by the Bank at 12:00 London time on the maturity of the transaction. The Bank’s determined rates are announced on the internet site or directly to the Exporter. Where the customer decides to use the option right, and the settlement type is chosen as Cash Settlement, the Bank pays the Cash Settlement amount (which is calculated by multiplying the difference between the usage price specified in the option transaction receipt and the rate announced by the bank on the maturity date with the option amount indicated in the option transaction receipt.) to the account specified by the customer until the EFT system closes at the maturity date in TL, and the option transaction ends.
- If the settlement type is chosen as phyical settlement, the amount which will be paid to the Exporter is the amount written on the option transaction receipt. The Exporter pays the amount until the stated time and following that the Bank pays the amount to the Exporters account.
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