VIX Options Pricing

Quote from sle:

Well, the explanation is much simpler - 50-delta is not nessesarily ATM forward. The difference between ATM forward and the 50-delta strike is exp(-0.5*time*vol^2), so the higher is the implied volatility, the more 50-delta strike would diverge from the ATM forward.

I had no idea, always learning something new on here :)
 
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