18.104.22.168.4 Spot Rate - Recommended Clause
"Spot Rate. The time for determining a Spot Rate for the purpose of Section 1.16 (e) of the 1998 FX and Currency Option Definitions published by International Swaps and Derivatives Association Inc is to be determined, for a European option, as at the Expiration Time, and for an American option or a Bermuda option, as at the time when the Notice of Exercise is given."
It is not made clear in Section 1.16 (e) of the 1998 FX and Currency Option Definitions the time for determining the Spot Rate (see 6.2 "History" for further details). If parties want to clarify this time they could include this clause in a Confirmation or the Schedule to an ISDA Master Agreement.
Last Update Date 29 Jun 2011