FRA (Forword Rate Agreement)
FRA is a contract between parties that determines the rate of interest, to be paid or received during the prearranged period. The contract will determine the rates to be used along with the termination date and notional value.
A contract between foreign exchange banks giving the right to buy or sell a specified amount of one foreign currency in exchange for another at a fixed price within some predetermined time period.
Average Price Strike Option
A type of currency option contract to set the 'strike' on 'exercise' price of options based on the average exchange rate between the contract date and maturity date.