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Basket options

Definition: [crh] Packages that involve the exchange of more than two currencies against a base currency at expirationDefinition: . The basket option buyer purchases the right, but not the obligation, to receive designated currencies in exchange for a base currency, eitDefinition: her at the prevailing foreign exchange market rate or at a prearranged rate of exchange. Multinational corporDefinition: ations with multicurrency cash flows frequently use basket options because it is generally cheaper to buy an option Definition: on a basket of currencies than to buy individual options on each of the currencies that make up the basket.

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