Open Thoughts on Finance
A long position’s expected returns are path dependent since it can be sold off. A writer’s position is not so in the absence of dynamic hedging.
Implied volatility is a function volatility at the money and vol + vvol + v2vol + … at other strikes.
Implied volatility is a function volatility at the money and vol + vvol + v2vol + … at other strikes.
Labels: Derivatives, Finance, Implied Volatility, Options
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