Montréal Exchange Lists Options On The US Dollar

The Montréal Exchange announces the listing, today, of options on the US dollar (USX), enabling retail and institutional investors as well as companies trading in US dollars to hedge their currency exposure.

Currency options allow investors and entrepreneurs to hedge against adverse exchange rate movement or to profit from any favourable exchange rate movement.

For example, by using the USX, if an investor holds US stocks in his or her portfolio, he or she will be able to ensure that depreciation of the US dollar versus the Canadian dollar does not affect the portfolio's return.

As well, a Canadian company will be able to secure the purchase or sale prices of the products or services for which payment is required in US dollars, despite the variations in the USD/CAD exchange rate.

Call and put options on U.S. Dollars are eligible for inclusion in a Registered Retirement Savings Plan (RRSP) and in the following deferred income plans: Registered Retirement Income Funds (RRIFs), Registered Education Savings Plans (RESPs) and Deferred Profit Sharing Plans (DPSPs).

A brochure providing information (specifications, strategies, examples of use, etc.) on the new options on the US dollar is available on the Montréal Exchange’s Web site at www.m-x.ca.