Currencies can be traded at spot and foreign exchange options markets.

He joins from Citigroup, where he was head of foreign exchange options since 2003.

He worked for almost 10 years at Cantor Fitzgerald, mainly trading foreign exchange options.

The foreign exchange options market is the deepest, largest and most liquid market for options of any kind.

Risk Reversal can refer to the manner in which similar out-of-the-money call and put options, usually foreign exchange options, are quoted by Finance dealers.

Foreign exchange option - the right to sell money in one currency and buy money in another currency at a fixed time and relative price.

Mr. Gladwin, who is based in London, was previously global head of foreign exchange options at Barclays Capital.

Another is the use of currency 'hedging insurance' which is provided by the forward foreign exchange market or by the foreign exchange options market.

Simon Manwaring joins from J.P. Morgan Chase as a principal and global head of foreign exchange options correlation trading.

Andrew Goldberg has joined BNP Paribas as a managing director and head of foreign exchange options in North America.

Mr. Marra, according to foreign exchange traders, could deal with customers, like Mr. Rusnak, who wanted to trade foreign exchange options.

He next worked as a managing director of Bankers Trust, overseeing the firm's foreign exchange options and being involved in the institutional hedge fund business until leaving the company in 1996.

Mr. Kramer, who trades foreign exchange options at Drexel, was also carrying documents suggesting he had entered the Bahamas with more than $400,000 in cash and securities, Drexel officials said.

Saxo Bank tightened and standardized the pricing of foreign exchange options on its retail trading platform, SaxoTrader in a bid to boost transparency and attract more investors to the market.

The restatement of 1987 results, which reduced the value of foreign exchange options by $80 million and the amount of accrued employee bonuses by the same amount, had no net effect on that year's financial results.

"For the last three years, we have had so much news on Gorbachev," said Mr. Ruaudel, the chief foreign exchange options trader in New York at Societe Generale, the giant French bank.

Craig A. Puffenberger, the head of global foreign exchange options at Credit Suisse First Boston, put it another way: "The volatility gives us opportunities to find things to buy cheaply and to sell them expensively."

"This problem in the Middle East is not going to go away for the rest of the week," said John Prout, senior vice president and head of foreign exchange option trading at Donaldson, Lufkin & Jenrette Securities.

In making its announcement yesterday that it had restated foreign exchange earnings for the fourth quarter of 1987, Bankers Trust pointed to an $80 million downward adjustment in the value of some of its foreign exchange options positions.

A foreign exchange option (commonly shortened to just FX option) is a derivative where the owner has the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date.

Fixed Income: BNP Paribas' fixed income team helps companies hedge their exposure to foreign exchange, interest rate, and credit risks, primarily though the structuring and sale of derivative products such as interest rate and foreign exchange swaps, foreign exchange options and credit derivatives.

"We are now at the stage that if you don't understand foreign exchange options, you don't belong in the foreign exchange market," said Nicholas Sargen, a vice president and co-director of international bond market research at Salomon Brothers Inc. "They offer a menu of investment or debt-issuing opportunities that were not available before."