Recent content by Newbie17

repost: Yes, on the blackboard vega hedging is highly questionable. You're hedging a parameter from a model that's wrong. But hedging options with other options helps take the model out of the equation. Say the 110 puts are trading at 20% and the 111 puts are trading at 21.5%. The options are...

thanks for all your replies!

Hi, I am new to options (FX options). I would like to know more about vega neutral trading strategies. I understand that vega neutral means you buy an option and you sell another to make the overall vega = 0. Eg a calender spread: buy a long end EUR call USD put and sell the front end EUR call...

Hi all, I have a question regarding FX straddle that i was asked at an interview Assuming you have a long EURGBP straddle strike at 78.31 notional EUR 4m At spot=78.57, delta is 0 What is delta when spot= 78.29? This was the interview question. Q1. My first question now is why will...