A. On August 7, 2007, the Plaintiff entered into a leap 4680SE export contract with the India Railroad Liquidation and Logistics Corporation (CONCOR) as a corporation established for the manufacture, supply, etc. of the rolling stock’s wheels and rolling stock for the manufacture, supply, etc. of the rolling stock.

The defendant is a commercial bank established under the Banking Act.

B. The background of the appearance of the currency option contract and the KIKO currency option company's export price is paid in foreign currency, such as US dollars. Since the equivalent value of foreign currency changes from time to time, it is necessary to avoid exchange risk that reduces the value of foreign currency at the time of exchange.

Accordingly, exporters trade monetary derivatives to avoid exchange risk.

In the past, the structure of simple futures exchange contracts (in the future, transactions that will be exchanged on certain terms at a certain point in the future): call options (the right to purchase underlying assets at the price in a certain time in the future) or put options (the right to sell underlying assets at the exercising exchange rate at a certain time in the future) such as put options (the right to sell underlying assets at the exercising exchange rate at a certain time in the future) which are organized in various forms according to the forecast of future exchange rate fluctuations of parties to a contract (the simple option that does not add any condition to the option that can sell or purchase underlying assets at the using exchange rate) have been used as goods for exchange hedging. The exchange rate at a higher rate of exchange than the other party to a contract has been guaranteed in the exercise of exchange option at a more than the other party to a contract.