What is RMB quanto?
Quanto is the abbreviation of Quantity Adjusting Option, which means that the target is a cash delivery derivative financial product priced in currency A but settled in currency B. If an investor wants to invest in foreign goods, such as an American investor who wants to invest in CME Nikkei 225 futures, the best way is to invest in it. When the Nikkei 225 index changes 1 point (1 yen) on that day, the value of futures will change by $500. In this way, we can invest in overseas goods and avoid exchange rate risks. Quanto futures or options are actually general futures or options plus a set of forward exchange rate contracts.