Learn how USD/CNY options work: what a call buys, what a put sells, and how the premium changes the result.
How the call and put work
A USD call gives the right to buy USD with CNY at an agreed rate. A USD put gives the right to sell USD for CNY. The buyer pays a premium for the right; the seller accepts the corresponding obligation.
The examples quote CNY per USD. A higher number means USD is stronger against CNY. In the USD/CNY quotation, the first currency is the one being bought by a call on the pair.
The example contract
Assume a hypothetical vanilla option covering 100,000 USD, with a strike of 7.2 CNY per USD and a premium of 0.02 CNY per USD. The total premium is CNY 2,000. These are illustrative negotiated terms, not a current quote or an exchange contract specification.
The calculations measure expiry intrinsic value in CNY. A physically settled contract exchanges currencies; an option on futures can create a futures position instead. The arithmetic alone does not specify the delivery method.
Buying USD calls
A call gives its buyer upside exposure to the specified underlying. For this example, use a strike of 7.2 CNY per USD and a premium of 0.02 CNY per USD. With the stated multiplier of 100,000, the premium cost is CNY 2,000.
At expiration with the underlying at 7.3, intrinsic value is (7.3 − 7.2) × 100,000 = CNY 10,000. After the premium, the gain is CNY 8,000 before other costs.
At or below the strike, the call has no intrinsic value and loses its whole premium. Breakeven at expiration is 7.22 CNY per USD. At 7.21, the call is in the money but still loses CNY 1,000 after the premium.
Buying USD puts
A put gives its buyer downside exposure. Assume the same 7.2 strike and 0.02-unit premium, costing CNY 2,000 with the same multiplier. The equal call and put premiums are hypothetical, not a claim about actual market quotes.
At expiration with the underlying at 7.1, intrinsic value is (7.2 − 7.1) × 100,000 = CNY 10,000. Subtracting the premium leaves CNY 8,000 before costs.
At or above the strike, the put loses its full premium. Its breakeven is 7.18 CNY per USD. At 7.19, it is in the money but still loses CNY 1,000 after the premium. Before expiration, time and implied volatility also affect the price; these expiry calculations do not predict its resale value.
Premium, timing and settlement
A correct price view does not guarantee a profit. The move must be large enough and arrive before expiry to recover the premium. Before expiry, time remaining and implied volatility affect the price available when selling to close.
The premium limits the standalone purchased option’s loss. Exercise can create another position requiring funding or margin, and keeping that position introduces further risk. An uncovered seller can lose much more than the premium received.
USD/CNY market reference
A local reference chart is not available for this pair. CNY and CNH are separate market quotations and should not be substituted for one another.
Sources and further reading
Official references for the mechanisms and contract conventions discussed here. Follow the provider’s current contract rules when evaluating an actual product.
References
Currency quotations · Options on futures: exercise and assignment · Options basics
Examples are hypothetical and exclude fees and financing costs. Contract terms vary by product. Updated 14 September 2026.