Recent content by Yogikaka

Hello, how close is the option to expiry? Since you are long, you would benefit from vol due to skew. Even the rate cut should favour your position. It also depends on the moneyness of the option. If it is ATM then theta is the culprit if close to expiry

I couldn't reply earlier as I was busy with my academics. ( I was still in college you know) The distinction is that an 'Asian in' has a floating strike and 'Asian out' has a fixed strike. For simplicity let's consider how a call option works for both in and out. S=Settlement price K=Strike We...