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It's misguided then...

These are existential problems facing most Western societies, to a greater or lesser degree. Furthermore, an integrated Europe could offer a solution on that front also. I would agree with Daal and say that there's a chance that, just like with the US a while back, this crisis could become a...

http://www.thedailymash.co.uk/news/international/euro-deal-after-merkel-feels-a-bit-%27hitlery%27-201110274474/

Why be scared sh1tless? The current state of affairs is due to the natural and inevitable cycle.

How do you know the degree of "untruth" with certainty?

Yes, of course. Implied volatility is a characteristic of an option that has a one-to-one relationship with a particular price. However, while the price of an option is not a particularly useful measure, IV allows you to perform some analysis. At the very least, it allows you to compare two...

Well, it obviously doesn't depend on the strike price. However, why not make an assumption that there's a relationship between future volatility and the underlying, as I suggested? For example, in the world of rates, one of the properties of skew is that vol for options whose strikes are close...

Surely that's not right... In a world where volatility is in itself a stochastic process, why can't there simultaneously exist a whole multitude of "expected future volatilities"?

1) Implied volatility isn't quite the same thing as price. 2) What else can your rich/cheap indicators be based on, if it's not price? 3) I think you misunderstood the point of using implied vol.

Still the same old sh1te PA... Short CHFSEK & CHFNOK, long NOKJPY. That's about it for the moment.

TJ, pls stop, honestly... You're now going beyond silly.

Any trade you do could move against you and cause mark-to-market pain, indeed. That's not a reason not to do the trade, but it's definitely a reason to size it appropriately (especially if you're leveraged). Yeah, I hear of a lot of credit guys doing these. Unfortunately, credit isn't my...

It's partly just the shape of the curve and the pricing of the ECB.

Yep, I'm with ya...

+100 Leverage isn't the point... The embedded liquidity option is (no good way to price it, but it's valuable) and so is vol & correlation. You shouldn't get involved in options unless you're interested in either of the two. It's interesting that someone who has supposedly been trading...

+1

Well, they might have retained their usefulness as an asset if your liabilities were in the same ccy. If you're a foreign investor, on the other hand, owning stocks in local ccy will probably make you feel like a Hungarian with a CHF mtge in 2011.

So what happens when/if Greece exits the EMU and re-denominates into the New Drachmae, while the rest of the EMU stays with the EUR? EURUSD is likely to shoot up, which means that you get absolutely hosed on both the stocks and the FX hedge, innit?

How you gonna do that? Let's say I wanna buy Greek stocks here and want to hedge the FX risk. What should I do?

Is that in local ccy? What about "inflayshuns" during the same period?