(1) For the purposes of PIB Rule A5.6.3, the
Specific Risk percentage for:
(a) a currency option is 8%; and
(b) an option on commodities is 15%.
(2) For the purposes of PIB Rule A5.6.3, in the case of an option with a residual maturity of more than six months, the strike price must be compared with the forward, not current price, or if the
Authorised Firm is unable to do this, then the money amount must be taken to be zero.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]